Sterling dropped sharply Thursday after Brexit negotiators declared talks between the U.K. and the European Union had reached a deadlock.
The British currency was down 0.6 percent against the dollar for the session at 1:00 p.m. London time.
At the end of their fifth round of negotiations, Michel Barnier, the EU's chief negotiator said the U.K. was once again not ready to detail the financial commitments it needs to make in order to leave the bloc. "Therefore there have been no negotiations on this subject," Barnier said.
Before negotiations move on to trade talks, there needs to be an agreement on how much the U.K. will have to pay to settle the accounts, on citizens' rights and the Irish border. The former seems to be the most contentious problem, which has seen no progress since the U.K. officially declared its intention to leave the European Union.
"On this question we've reached a state of deadlock which is very disturbing for thousands of project promoters in Europe and it's frustrating also for taxpayers," Barnier told reporters in Brussels.