The pound is today converting against the euro to €1.1169.
This is down from Friday, when it was trading at €1.112 euros to the pound.
It comes among ongoing Brexit negotiations between British officials and the European Union.
The drop also anticipates the Brexit “deadline” of 4 December set by European Council President Donald Tusk for Theresa May to submit an updated Brexit bill offer.
European banks are said to have removed £313.2 billon worth of assets from the UK in the past year.
These results, which emerge from official European Union data, represents a fall of 17 per cent.
It was also announced a third of banks, polled by the European Banking Authority, were concerned by the potential legal risks of trading in the UK that might arise from a hard Brexit.
Last Saturday, the EBA said: “It is important that banks and their counterparties, as well as consumers and public authorities, consider appropriate mitigating actions and contingency plans to address these concerns.”
Laura Parsons, currency analyst at TorFX commented the Brexit discussions had impacted the pound’s recent decline against the euro.
“At the close of last week the pound was able to strengthen slightly as Bank of England policymaker Silvana Tenreyro indicated that Brexit could change the path of monetary policy.”
However, German chancellor Angela Merkel’s talks to form a coalition between her conservative party and the Social Democrats (SPD) gave strength to the euro currency.
“The hint that rate hikes could be more aggressive if Brexit allows gave Sterling a modest boost, but GBP/EUR declined as progress in German coalition talks lifted the euro.
“GBP/EUR is currently trading in the region of €1.116 and could extend losses if German retail sales show an increase in consumer spending.”
Last Friday, the pound dropped to €1.112 from Thursday’s value of €1.125.
The drop was prompted after UK workers faced losing two decades of wage growth after the Autumn Budget announcement from Chancellor Philip Hammond.
Shock figures from the Office for Budget Responsibility also predicted UK earnings could be worse in 2022 than in 2008.
However, Hammond expressed hopes Brexit would boost consumer confidence to help the UK economy climb back by mid 2020.
