Sterling is likely to further weaken amid increasing political instability and sluggish Brexit negotiations, according to a leading economist.
Adam Posen, president of the Peterson Institute for International Economics and a former member of the Bank of England's monetary policy committee, told CNBC on Tuesday that a decline in the pound is to be expected.
The pound has steadily weakened against major currencies since the U.K.'s vote in June 2016 to leave the European Union (EU). This is largely due to political instability surrounding Theresa May's leadership and poor progress made in Brexit negotiations with EU officials.
Posen said that sterling would continue to weaken due to fundamentals, and not just the poor progress made by Brexit negotiations so far.
"The day-to-day, month-to-month movements (in the pound) will focus on the everyday (Brexit) negotiations," he said. "But for the British people and the British economy going out more than six months, what's going to happen is a decline in the pound.
"Irrespective of how negotiations go, the U.K. is making itself less competitive with its largest trading partner, it's shutting down economies of scale where 50 percent of its exports go."