Sterling slides further amid ‘no-deal’ fears

The pound tumbled to its lowest level against the US dollar in nearly a year as traders worried about the growing possibility of a no-deal Brexit.

Sterling was down more than 0.4 per cent versus the greenback at $1.287, marking its weakest point since late August 2017, and slipped 0.5 per cent against the euro, falling to its lowest rate since October.

However, the pound’s drop lifted the FTSE 100, which ended the day up 0.75 per cent at 7,776.65.

Connor Campbell, a financial analyst at Spreadex, said: “The FTSE benefited from the continuation of sterling’s awful August.

“With the threat of a ‘no-deal’ Brexit – something highlighted by both Mark Carney and Liam Fox in the past few days – at the forefront of investors’ minds, the pound took another troublesome tumble.” In UK stocks, Paddy Power Betfair shares shed more than 7 per cent to 7,540p after the bookmaker’s warning that full-year earnings would be knocked by extra taxes in Australia and losses from its fantasy sports business.

Energy provider Centrica rose 2 per cent to 150.8p as British Gas confirmed it was raising the price of its standard variable tariff by 3.8 per cent on 1 October, the second increase announced by British Gas this year.

The biggest risers on the FTSE 100 included Standard Life Aberdeen, up 3.2 per cent at 331.5p, and Micro Focus International ,up2.7 per cent at 1,229.5p. The biggest fallers on the FTSE 100 included Ocado Group, down 0.9 per cent at 1,050p, and London Stock Exchange Group, down 0.6 per cent at 4,510p.