The pound was flat against the dollar and euro in early London trading, near the lows reached the days before on reports that Brexit talks are at an impasse.
Sterling fell 1% after Britain told the European Union on Wednesday it needed to break a fundamental impasse to clinch a Brexit trade deal by the end of the year.
British Prime Minister Boris Johnson will resume Brexit talks in person in Brussels next month, the Times newspaper reported. The government insists it will not extend the transition period.
The pound is near its lowest levels in more than three decades, as it grapples with Brexit, the prospect of negative interest rates in Britain, a deep recession and a growing pile of debt.
Bank of England Governor Andrew Bailey said on Wednesday that the central bank was right to consider cutting rates below zero to give the economy an extra boost, but that careful thought would need to be given to the side-effects of doing so.
Britain has the worst coronavirus death toll in Europe. A COVID-19 test and trace service is due to start in England today to allow the loosening of lockdown measures for most of the population.