Pound slumps to three-month low against dollar after 'hard Brexit' reports

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The pound slumped to its lowest point for more than three months after reports that Theresa May is heading for a "hard Brexit".

Before making a slight recovery on Monday, Sterling fell to below 1.20 dollars - its lowest point since October's "flash crash".

The drop comes ahead of the Prime Minister's announcement on Tuesday regarding her approach to Brexit negotiations.

Various Sunday newspapers said Mrs May was heading towards a departure from the single market.