Sterling continued its steep slide against the dollar on Monday as concerns about the British economy deepened in the wake of Brexit.

The pound plunged 3.35% against the greenback to 1.32 dollars, following on from Friday's colossal 10% dive, BT website reported on Monday.

Against the euro the pound was also down, falling 2.27% at 1.20 euro.

Chancellor George Osborne had contributed to a mini-rally early on Monday after he spoke of Britain's strong economy and claimed the country remains "open for business". However, the gains soon evaporated, with experts warning that months of uncertainty could see more volatility.