March 13, 2020 / 3:53 PM / 5 months ago

UPDATE 1-Sterling hits 5-month lows on broad dollar rebound

* Graphic: World FX rates in 2020

* Graphic: Trade-weighted sterling since Brexit vote (Updates prices)

By Saikat Chatterjee

LONDON, March 13 (Reuters) - The pound weakened to a five-month low on Friday, erasing earlier gains, as the dollar rallied across the board in volatile trading.

The dollar recouped all its losses in late London trading, posting sharp gains against the safe-haven yen as stock markets recovered globally amid efforts made by governments and policymakers to address the economic fallout from the coronavirus outbreak.

In late afternoon trading on Friday, the British currency fell 0.6% to $1.2488 after rising above $1.26 early in the session.

On a weekly basis, the pound was down more than 4%, marking its biggest weekly drop since the Brexit referendum vote in June 2016.

The pound has largely tracked the volatile moves in global markets this week, with twin stimulus measures from the Bank of England and the British government, including an interest rate cut and billions of pounds of support for struggling firms, offering only temporary support.

The British currency has come under pressure as investors expect it to remain vulnerable due to its exposure to major export markets including the United States and Europe, according to Jeffrey Halley, a senior market analyst at OANDA.

Against the euro, the pound halted its losing streak, stabilising at 89.02 pence, just below a October 2019 high of 89.38 pence. (Reporting by Saikat Chatterjee; Editing by Angus MacSwan and Catherine Evans)

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