The pound tumbled to its lowest level in three decades amidmounting concern the U.K. is heading for a so-called hard Brexitthat would restrict access to the European Union's singlemarket.

Sterling exceeded its lows versus the dollar set in the wake ofthe June 23 referendum and touched the weakest in 3½years against the euro. The slide extended as Prime MinisterTheresa May was said to take the view that financial services wouldget no special favors in EU exit talks. The pound has fallenagainst all 16 of its major peers since the premier's weekendannouncement that she'll trigger the formal process forquitting by March.

“We have the market facing the reality that Brexit is about tobegin and we could be faced with hard Brexit,” said JaneFoley, a senior currency strategist at Rabobank Internationalin London. The reports about the financial sector are “justlacing the concerns the market already has about the outlook forgrowth, investment and jobs in the U.K. economy.”