News of prorogation sends sterling sliding
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”.