LONDON: Sterling extended losses against the dollar and the euro on Monday after British manufacturers had their weakest month in over two years, according to survey data.

The British currency, which was already on the back foot on negative Brexit headlines, fell to the day's lows at $1.2886, down 0.6 percent on the day.

Against the euro, the British currency fell by a similar margin to 90.09 pence.

British manufacturers had their weakest month in over two years and export orders suffered a rare fall in August, a survey showed.

Government bond futures edged up after the data to touch a session high of 122.44 at 0831 GMT, up 11 ticks on the day and about 7 ticks higher than their level before the data.