Sterling hit its lowest level in two weeks on Friday, after a poll showed a lead for Prime Minister Theresa May's Conservatives over the opposition Labour Party has narrowed sharply ahead of national elections on June 8.
According to the YouGov poll published late on Thursday, the first since a suicide bombing killed 22 people in Manchester, May's party was on 43 percent, down 1 percentage point compared to a week ago, while Labour was up 3 points on 38 percent.
The pound fell over 0.5 percent on the day from its previous day's close to $1.2861 - its lowest level since May 12.
It was 0.6 percent lower at 87 pence per euro.
Polls had put May's Conservatives on course for a big victory after she called the snap election in April but her lead slipped in the days before the attack after both sides published their election manifestos.