Sterling fell against the dollar and euro on Monday as investors worried about Theresa May's ability to stay on as British prime minister and get what they consider to be a good exit deal from the European Union.
The value of the pound dropped after a projection suggested the Conservatives could fail to win an outright majority in the election on 8 June. Previous opinion polls suggested Prime Minister Theresa May's party would increase its majority, which is currently 17 seats.
United Kingdom Chancellor George Osborne stands by his financial policies, in spite of figures which show the UK economy has shrunk by 0.5 percent and concerns Britain is facing a recession.
United Kingdom consumer price inflation unexpectedly jumped to a 17-month high in April, 3.7%, driven by big rises in tax on alcohol and tobacco as well as higher prices for women's clothing and food, data showed.