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Pound falls as Brexit uncertainty rises | Pound falls as Brexit uncertainty rises |
(35 minutes later) | |
The pound has fallen against the dollar amid political uncertainty as Prime Minister Theresa May struggles to broker an agreement on Brexit with her cabinet. | The pound has fallen against the dollar amid political uncertainty as Prime Minister Theresa May struggles to broker an agreement on Brexit with her cabinet. |
In early trading, sterling fell nearly 1% against the dollar to $1.2845. | In early trading, sterling fell nearly 1% against the dollar to $1.2845. |
Against the euro, it was down 0.2% at €1.1422. | Against the euro, it was down 0.2% at €1.1422. |
Mrs May is trying to arrange an agreement in cabinet on the current Brexit talks in time for a hoped-for summit in Brussels later this month. | Mrs May is trying to arrange an agreement in cabinet on the current Brexit talks in time for a hoped-for summit in Brussels later this month. |
However, media reports suggest that her efforts have been delayed by increasing disarray in her cabinet over the issue. | However, media reports suggest that her efforts have been delayed by increasing disarray in her cabinet over the issue. |
On Friday, Transport Minister Jo Johnson became the latest government figure to quit his post over Brexit, arguing that UK was "on the brink of the greatest crisis" since World War Two. | On Friday, Transport Minister Jo Johnson became the latest government figure to quit his post over Brexit, arguing that UK was "on the brink of the greatest crisis" since World War Two. |
"Sterling's early November rebound continued to unravel on Monday, the currency coming down with a nasty case of the Brexit blues," said Connor Campbell, financial analyst at Spreadex. | |
"With her most ardent anti-EU MPs opposed to her customs arrangement plans, and a potential Remain rebellion brewing following the resignation of Jo Johnson, Theresa May appears to have been forced to abandon the emergency cabinet meeting that was pencilled in, after a supposed breakthrough last week." | |
He added that the pound's slump was exacerbated by support for the dollar, which came from comments in the November statement from the US central bank, the Federal Reserve. |