FILE PHOTO: British five pound banknotes are seen in this picture illustration taken November 14, 2017. REUTERS/Benoit Tessier/Illustration

LONDON (Reuters) – Sterling traded below $1.28 on Friday, close to its four-month low, as cross-party Brexit talks neared collapse and pressure mounted on Prime Minister Theresa May to resign.

Brexit talks between May’s Conservatives and the opposition Labour Party are about to end without an agreement, the BBC reported. Earlier, May had agreed to set out a timetable for her departure in early June.

Sterling was down 0.1% on Friday at $1.2785, near its February low of $1.2773. It had dropped to a three-month low earlier this week and dipped below $1.28 on Thursday,

“The economic fundamentals have lent a hand to sterling in recent months, but