Sterling falls to two-year low

Pound plunges as Tory rivals harden Brexit stance

Sterling falls to two-year low 1The FT reports that Sterling plunged to a two-year low against the dollar (opposite), as markets factored in the growing risk that Boris Johnson’s Brexit strategy will result in a no-deal exit from the EU within months. Richard Branson was quoted earlier this week as saying that in the event of a no-deal Brexit the pound would reach parity with the dollar.

Mr Johnson’s demand that the Irish backstop must be removed from any has been repeatedly rejected by Brussels, with BBC reporting that one EU diplomat warned that Boris Johnson appeared to be living in “a fantasy” world.

The pound fell nearly one per cent on Tuesday to $1.2399 — its lowest since April 2017 — leaving it on course for its biggest single-session fall since March and below the level breached in a temporary “flash crash” in January this year. It was down 0.5 per cent on the euro at €1.1058.

The two-year record does not quite apply (yet?) to the Euro, below, but could soon.

Sterling falls to two-year low 3

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