Pound sterling is now selling off against the U.S. dollar and the Japanese yen, while strengthening against the Australian dollar and the euro.
The pound fell on Monday after minister for worldwide trade Liam Fox said there was a 60 per cent chance the United Kingdom would leave the EU without a deal, putting the blame on "intransigence" from the European Commission.
Trade developments and weakness in the Pound (GBP) caused GBP/INR to tumble from the interbank rate of 90.02 to 89.12 last week, and GBP/INR has fallen further so far this week to it's lowest level since January 2018.
The news of no-deal Brexit weighs on Sterling sending it to the lowest level since August 31 previous year and coupled with earlier comments of the outgoing Monetary Policy Committee (MPC) member Ian McCafferty who added to the no-deal Brexit fear in public debate together with dovish monetary policy outlook.
'A lot of companies can't wait for the negotiations outcome in October so a lot of course are trying to hedge against a drop in the Pound'.
"Some are thinking in the market that the BoE raised in order to given them ammunition to cut rates in the face of a no- deal", said Neil Jones, head of hedge fund FX sales at Mizuho Bank.
The Euro (EUR) has remained relatively stable recently, leaving its exchange rates at the mercy of developments overseas, and the European Central Bank's (ECB) latest economic bulletin this morning served to highlight the Eurozone's economic trajectory.
Recent gains by the euro and the dollar have also hurt the pound.
"Right now we're short of any meaningful news flow and uncertainty is high - that's not a good thing", said Jordan Rochester, an analyst at Nomura International Plc. The pound has lost more than 10 percent since April and is down nearly 15 percent since the Brexit Referendum in June 2016.
Traders are now preparing for Friday's reading of second-quarter British economic growth numbers to give the pound some possible relief.
The number of people recruited for permanent jobs in Britain grew at its slowest pace in nine months in July, reflecting record low unemployment and a shortage of migrant workers from the European Union, a recruiters' body said on Wednesday.