News of pro­ro­ga­tion sends sterling slid­ing

The Scotsman - - PARLIAMENT SHUTDOWN - By HENRY SAKER-CLARK

The value of the pound has crashed lower af­ter traders were spooked by news that the Government is ex­pected to sus­pend Par­lia­ment from mid-septem­ber.

Although sterling re­couped some of its losses af­ter go­ing into “freefall” when the news was first an­nounced yes­ter­day morn­ing, it still slumped to a six-day low.

Down­ing Street con­firmed that Boris John­son has spo­ken to the Queen to re­quest that Par­lia­ment is sus­pended un­til 14 Oc­to­ber.

The Prime Min­is­ter in­sisted the move will al­low him to bring for­ward a “bold and am­bi­tious leg­isla­tive agenda”, but he has faced staunch crit­i­cism that it could sti­fle op­po­si­tion to a no-deal Brexit.

Pound traders have in­ter­preted the plans as in­creas­ing the pos­si­bil­ity of a no-deal Brexit, weak­en­ing sen­ti­ment against both the dol­lar and euro. Sterling slid 0.74 per cent to 1.2196 against the dol­lar in early trad­ing, while it also fell 0.77 per cent to 1.0993 against the euro.

An­a­lysts have said the value of the pound will re­main un­der pres­sure and con­tinue to fluc­tu­ate while the fu­ture of Brexit is “un­clear”.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.