Pound Plunges On Brexit Fears

The pound has fallen its lowest levels in over two years, as a no-deal Brexit appears increasingly likely.

ING strategist Petr Krpata said: "The British pound started weakening sharply today, with the market awaking to the reality of a new UK government, its rather combative stance on the current EU-UK Brexit deal and its open remarks on the rising probability of a no deal Brexit."

Calling the fall a "meltdown", Krpata said sterling's woes were unlikely to be over, as "politics should remain the key negative for sterling in the months to come".

Monday's level in terms of the dollar was the worst since March 2017.

Prime Minister Boris Johnson has vowed to lead Britain out of the EU on October 31 even if this means doing so without a divorce agreement. On Monday he urged EU leaders to drop their opposition to renegotiating Brexit.

XTB analyst David Cheetham said: "The pound has gotten off on the wrong foot at the start of the new week. Brexit continues to be the dominant theme with a noticeable harshening of the rhetoric in recent days raising concerns amongst traders." (AFP)