Pound drops below $1.27 on Brexit uncertainty

Tuesday, 21. May 2019 10:12

The pound traded lower against the dollar and other major currencies on Tuesday, dropping below $1.27 for the first time in over four months. The British currency was affected by the uncertainty regarding the United Kingdom's impending exit from the European Union after the government's Brexit deal talk with Labour ended unsuccessfully last week.

On Monday, EU's chief Brexit negotiator warned that a no-deal Brexit could still happen if the UK doesn't "take its responsibilities," while UK Chancellor of the Exchequer Philip Hammond is set to deliver a speech later in the day saying that nothing can be done to avoid the negative consequences in case Britain leaves the bloc without a deal. However, UK House of Commons Leader Andrea Leadsom insisted that, even though she would prefer an orderly Brexit with a withdrawal agreement, a no-deal scenario would still be better than staying in the EU past October if Parliament fails to pass a deal by then.

Sterling slid 0.26% against the dollar to sell for 1.2690 at 10:10 am CET and it was down 0.23% compared to the yen to go for 139.7155 at 10:11 am CET. The euro added 0.11% against the pound to change hands for 0.8786 at 10:11 am CET.

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Breaking the News / NP