Sterling shocked everyone overnight by plunging as 6 percent against the dollar. Since then, the pound has recovered slightly from its flash crash but is still down against the euro and other currencies.
The currency had been under pressure all week on fears that the U.K. could experience a "hard" Brexit and lose access to Europe's single market when it leaves the European Union – which could hurt the economy. And it is looking likely that sterling will remain low.
"Without some indication that 'hard' Brexit is not going to occur, it potentially looks like it will persist," Shilen Shah, bond strategist at investec wealth & investment, told CNBC via email.