STERLING tumbled yesterday, as fears of a no-deal Brexit hammered the currency again.

The euro traded above 90p for the first time since last autumn on the back of sterling’s weakness.

Sterling dropped to its lowest level against the dollar for nearly a year, as International Trade Secretary Liam Fox’s weekend comments about the chances of a no-deal Brexit being 60-40 continued to haunt the pound.

Foreign exchange traders believe that a no-deal Brexit, where the UK leaves the European Union without reaching agreement over its future relationship with the bloc on trade and other key issues, is likely to prompt a further plunge in the pound.

Sterling is already well adrift of the near-$1.50 levels at which it traded on June 23, 2016, ahead of the EU referendum result.

The pound was, at 5pm in London yesterday, trading around $1.2879, down more than three-quarters of a cent on its previous close. The euro was trading around 90.05p, up 0.57p on its close in London on Tuesday.

David Madden, analyst at CMC Markets UK, noted sterling was falling “as fears regarding Brexit negotiations persist”.

He said: “There hasn’t been any new news about the UK’s impending exit from the EU, but Liam Fox’s comments about the possibility of a no-deal Brexit is 60-40 is weighing on the pound. Sterling dropped below $1.29 – its lowest level since late-August 2017.

“The slide in the pound against the US dollar since April has been relentless, and we haven’t seen any signs of it letting up.”

Peter Kinsella, strategist at Commonwealth Bank of Australia, told Reuters: “What we are seeing is broad sterling weakness, a very aggressive weakening trend.”