The struggling pound is now in a more dire state than the dip following Black Wednesday, the the Treasury lost £3bn.
Michael van Dulken, head of research at Accendo Markets, says in an email on Monday morning that the dollar's strength is partly to blame for the fall in the pound but adds: "UK PM May's Hard Brexit rhetoric (ditch single market) in a Sky interview also gave Sterling a kick". And, that does not take into account the fact that the pound fell in value in the half a year leading up to the Brexit vote as markets reacted adversely to the uncertainty. The pound has also dropped 10 per cent against the euro, now sitting at 1.15 euros.
Sterling dropped this week after British Prime Minister Theresa May suggested that the United Kingdom could actually be going for a hard Brexit.
The pound is falling against most major currencies on Monday morning after Theresa May signalled in an interview that the United Kingdom is likely to quit the Single Market when Brexit occurs.
She said: "We're leaving, we're coming out".
The road to Brexit has not been smooth for the government and reports today reveal that cabinet ministers think they are likely to lose a court case that could hamper May's March 2017 timeline for triggering the Article 50 exit clause starting the on a two-year transition out of the EU.
While the United Kingdom currency was tumbling in the wake of Mrs May's comments, the dollar was enjoying a climb in value in advance of President-elect Donald Trump's press conference.
Mr Trump is expected to give his first formal press conference since winning the United States election on Wednesday, with investors eager to get more details on his policy framework.