The pound continued to trade lower against the dollar and the euro amid fears about a no-deal Brexit.
Prime Minister Boris Johnson is set to meet with German Chancellor Angela Merkel in Berlin.
Mrs Merkel said on Tuesday that she was open to "practical solutions" regarding the Irish backstop after Mr Johnson called the plan "anti-democratic" and said it must be scrapped.
Marshall Gittler, chief strategist at ACLS Global, says Mrs Merkel comment "was viewed as a possible signal that the EU could be willing to negotiate on this point, but frankly I doubt it".
"I think she was just being polite."
Sterling is 0.32% down against the dollar at $1.2132. It is 0.28% lower on the euro at €1.0934.