British pound bottoms out against the US dollar

The British pound hit its lowest-ever level against the U.S. dollar Monday, building on Friday’s rout, before later paring losses.

The currency touched $1.0349 during Asian trading hours Monday, breaking through 1985’s previous record low. It later rebounded, and was recently trading at about $1.0861, as investors considered potential responses from British authorities.

Peter Kinsella, global head of foreign-exchange strategy at Union Bancaire Privée, said talk of a potential “Bank of England meeting or statement has prompted short covering in the market.” The retracement was “about reducing risk while we wait to see what they will say,” he said, referring to the U.K. central bank.