| LONDON, Sept 23
LONDON, Sept 23 Sterling slipped back towards
$1.30 on Friday, ending the week in much the same place as it
started, with worries over Britain's exit from the European
Union keeping pressure on the currency.
The pound had jumped back over $1.31 on Thursday,
after Bank of England policymaker Kristen Forbes said she saw no
case for a further cut in interest rates, after the Bank slashed
them to a record low of 0.25 percent last month.
But it slipped later in the day and continued to struggle on
Friday, after British Foreign Secretary Boris Johnson said he
expected the formal divorce proceedings between Britain and the
EU to begin early next year, and that two years may not be
needed to negotiate a deal.
Sterling hit a three-decade low below $1.28 in the wake of
Britain's shock Brexit vote but had climbed about 5 percent as
of early September as data showed the economy holding up
After parliament returned from its summer recess, however,
bringing Brexit back into the headlines, worries about the
fallout have weighed on sentiment and the currency alike.
"What we've always said is that with no news on Brexit,
sterling is able to recover somewhat, but the uncertainties are
still there," said Commerzbank currency strategist Esther
Reichelt. "We'll have to see whether the economy maintains this
positive sentiment when we're proceeding with Brexit."
Reichelt added, however, that some hard facts - rather than
worries or uncertainties - would be needed in order to justify a
break below July's $1.2798 low.
Sterling fell 0.6 percent on Friday to $1.3005,
leaving it flat on the week. It also slipped 0.6 percent to
86.17 pence per euro, 0.3 percent weaker than at the
start of the week.
"It almost feels like (sterling) is finding an even tighter
trading range in what is an already tight trading range," said
Western Union's head of corporate treasury sales, Tobias Davis.
(Editing by Hugh Lawson)