The pound hit a three-year low against the euro on Monday after Prime Minister Theresa May announced Britain would begin Brexit negotiations by March and the finance minister warned of "turbulence" ahead.

The pound reached 87.46 pence against the euro -- its weakest level since August 2013 -- at around 0740 GMT before stabilising at 87.20 pence, after a new index showed manufacturing had benefited from a lower pound.