Sterling has sunk as low as $1.2798 - more than 15% below the levels seen on referendum day - in Asian trading before recovering slightly to $1.2897, down 1%. 

That slide has hit stock markets in Asia, with the Hang Seng in Hong Kong down 1.9% and the Nikkei in Tokyo off 2.6%.

Ben Kwong, chief operating officer of KGI Asia, said: "The weakening sterling is adding to depreciation pressure of the yuan, which has dragged Chinese shares both in Shanghai and Hong Kong." 

China's yuan hit a new low against the dollar in early trading after the central bank set its official midpoint at its lowest level since November 2010. 

Chris Johnston
Business reporter

Welcome to another day of Business Live with myself and Karen Hoggan. Not great news from the Far East this morning as sterling continues to be battered in trading on Asian markets. We'll bring you the latest developments as they happen.

Get in touch with us at bizlivepage@bbc.co.uk or follow me on Twitter at @cajuk, external