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The pound slipped on Tuesday following a suicide bombing attack at an Ariana Grande concert at Manchester Arena, the most deadly attack in the UK in a decade.
Police raised the death toll to 22 and said children were among those killed. A total of 59 people were left injured in the blast.
Sterling slipped by about 0.2 per cent against the dollar to $1.2978 following the attack. It was also down 0.2 per cent against the euro at €1.1537.
Investors are assumedly shaken by the events in Manchester yesterday evening, combined with displaying caution ahead of the 8 June general election and as Brexit negotiations get under way.
GBP/EUR 1.1531
GBP/USD 1.2977
GBP/AED 4.7732
GBP/AUD 1.7308
GBP/CAD 1.7501
GBP/CHF 1.2612
GBP/NZD 1.8457
EUR/USD 1.1234
GBP/ZAR 17.136