The British pound spiked briefly before tumbling.
The currency is currently trading at $US1.6721, 0.5% for the day.
The moves came after the Bank of England published its latest inflation report.
“Mark Carney said global political risks and the euro region’s weakness might weigh on Britain’s recovery as he insisted that the Bank of England won’t raise interest rates too soon or too fast,” reported Bloomberg’s Scott Hamilton.
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