LONDON  - Sterling fell more than half a percent to below $1.26 on Friday after Prime Minister Theresa May returned from a visit to Brussels, where she attempted to win assurances from the European Union over her Brexit withdrawal agreement.

The trip, which has been cast by opponents as a failure, has not gone down well in currency markets, with the pound falling to a day's low of $1.2591 in early European trade.

The British currency also dropped 0.3 percent versus the euro to 90.025 pence.

(Reporting by Tommy Reggiori Wilkes, editing by Larry King) ((thomas.wilkes@tr.com; Reuters Messaging: thomas.wilkes.thomsonreuters.com@reuters.net))