FOREX-Sterling tumble continues on growing worries about no-deal Brexit

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Yen little fazed as BOJ stands pat, as expected
* Dollar supported as bets on aggressive Fed rate cuts wane
* Sterling struggles with growing chance of no-deal Brexit

(Adds BOJ meeting outcome, analyst's comment)
By Stanley White
TOKYO, July 30 (Reuters) - Sterling fell to a new two-year
low versus the dollar on Tuesday amid growing speculation that
Britain is headed for a messy no-deal Brexit from the European
Union.
Sterling has fallen against the dollar for the past four
trading days on worries that Britain will exit the EU without
agreements on trade and other key issues. There is also a chance
that new Prime Minister Johnson will call an early election.
Against a basket of six major currencies, the dollar traded
near a two-month high.
The Fed is expected to cut rates by 25 basis points on
Wednesday, and investors are watching for clues on whether the
move may be a one-off or the first in a series of several cuts,
as many traders are anticipating. Uncertainty about how Britain will divorce itself from the
EU and the resulting economic impact could keep the pound on the
back foot for weeks to come.
Monetary policy is another important factor for currency
markets as central banks from Australia, New Zealand, Europe and
possibly Britain are expected to cut rates due to low inflation
and risks to global economic growth.
"No one wants to buy the pound now," said Yukio Ishizuki,
foreign exchange strategist at Daiwa Securities in Tokyo.
"The bottom has fallen out, and I'm not sure where it will
stop. Uncertainty about Brexit is the main story. I don't see
how Johnson can get an agreement in place."
Sterling GBP=D3 fell to $1.2120, the lowest since March
2017.
The pound took a turn for the worse on Monday after Johnson
said the Brexit divorce was dead and warned that unless the
European Union renegotiated, Britain would leave on Oct. 31
without a deal.
The dollar index .DXY edged to a two-month high of 98.206.
The Fed is forecast to cut its target interest rate range on
Wednesday by 25 basis points to 2.00%-2.25%.
Investors previously saw the chance of an even more
aggressive 50-basis point cut, according to interest rate swaps,
but these expectations have dissipated as data has shown the
U.S. economy is not as weak as some feared.
The yen was little changed versus the dollar on Tuesday,
trading near a three-week low after the Bank of Japan left
monetary policy on hold as expected.
The yen JPY=EBS was quoted at 108.570 per dollar, little
changed on the day. The yen fell to a three-week low of 108.950
early in Asian trading.
Japan's currency pared its losses and edged a tad higher
versus the dollar after the BOJ's decision, but the move quickly
faded.
The BOJ, as expected, maintained a pledge to guide
short-term interest rates at -0.1% and the 10-year bond yield
around 0% via aggressive bond purchases.
The BOJ also said it will ramp up stimulus "without
hesitation" if needed, but traders have repeatedly said that
compared with other major central banks the BOJ has limited
options left.