Sterling sharpens decline to seven-month nadir versus dollar

Sterling fell in European trade on Thursday for the third straight session against the dollar, plumbing seven-month lows amid doubts about a Bank of England's interest rate hike this year. 

GBP/USD slipped 0.2% as of 08:05 GMT to 1.3080 from the opening of 1.3110, with an intraday high at 1.3120, and the lowest since November 13, 2017 at 1.3066. 

Sterling closed down 0.8% yesterday against the dollar as the later strengthened, while Bank of England's financial stability report warned from Brexit risks and its negative impact on economic performance and stability. 

The dollar index rose 0.1% on Thursday to an eleven-month peak at 95.24, as the greenback widens its lead over major and secondary rivals. 

UK Financial Stability 

Bank of England's financial stability report expressed concerns that Brexit still presents risks to local stability, but other than that, risks remain balanced, with corporate debt in Britain still much below 2008 levels. 

Carney's speech on the matter afterwards warned from increasing global trade tensions that could lead to interest rate cuts in the long term, asserting that protectionists calls could impact global growth negatively.

Remarks by BoE officials on Tuesday raised uncertainty over Brexit and cast shadows over a possible BoE rate hike later this year.