Sterling has rebounded against the greenback after losing ground earlier in the morning, as Prime Minister Theresa May is set to officially start the UK's formal proceedings to leave the European Union later today.
The letter which triggers Article 50 is expected to be delivered to the EU in Brussels just after 12.30pm GMT, triggering two years of uncertain negotiations between the UK and the EU, according to Reuters.
Sir Tim Barrow, Permanent Representative of the UK to the EU, will present the Prime Minister's letter of withdrawal to the European Council President Donald Tusk and will then make an address in London this afternoon.
As of 10.20am, sterling was down just 0.07% against the dollar at $1.2443, while the FTSE 100 also remained relatively flat, up just 0.02% at 7345 points.
Earlier this morning, sterling fell 0.43% to $1.239, the only major currency to record a loss versus the dollar, which itself has faced pressure from US President Donald Trump's failure to pass his healthcare reform through Congress on Friday.
Meanwhile, upcoming Brexit negotiations face further complications from the potential separation of Scotland if it were to trigger a second independence referendum.
In Scotland yesterday, MPs in Parliament voted by a majority of 69 to 59 to allow First Minister Nicola Sturgeon to go through the process of holding a second Scottish independence referendum by spring 2019, though her request is likely to be blocked by May.
Sterling has been under pressure since the UK voted to leave the EU but rose to an eight-week high last week on the back of dollar weakness, with many calling into question Trump's ability to pass reform.
Mike Amey, managing director and portfolio manager at PIMCO, told the BBC: "Markets will look for any indications of compromise. Sterling will continue to ebb and flow in the coming months and will likely be the best indicator of how the negotiations are going."
Elsewhere, Asian shares climbed steadily with the MSCI Asia-Pacific ex-Japan index rising 0.2% towards 21-month highs, according to Reuters.
Brent Crude rose 15 cents to $51.48 in early trading as the Organisation of the Petroleum Exporting Countries (OPEC) suggested it could extend output cuts to the end of the year.
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