Green light for prorogue drags pound

The pound tumbled following news that Boris Johnson had gained the Queen’s permission to suspend Parliament.

The currency dropped as much as 1 per cent against the US dollar during the day, before recovering slightly to trade down 0.41 per cent at $1.224. Against the euro, it was 0.3 per cent lower at €1.104.

Han Tan, market analyst at FXTM, said: “The pace of sterling’s drop demonstrates yet again the currency’s susceptibility to Brexit fears, and that there’s little conviction to ensure that the pound remains elevated.

“The jovialities at the G7 summit have given way to the harsh realities of the UK political arena.”

London’s top shares were up and down throughout the day as the global mood shifted, but eventually closed higher on the back of the weaker pound.

The FTSE 100, which benefits from sterling’s weakness, was up 25.13 points, or 0.35 per cent, at 7,114.71.

However, the FTSE 250, which is largely made up of companies that operate in the UK, was down 132.89 points, or 0.69 per cent, to 19,202.99.

WH Smith said it was on track to meet full-year expectations, boosted by strong performance in its travel stores. Shares fell 29p to 1,964p.

Ted Baker ended its solo efforts to break into the Japanese market by signing a five-year licensing deal with local operator Sojitz Infinity. Shares were 11p higher at 923p.

Oilfield firm Petrofac fell 4.3p to 410.3p after saying it expected revenues to decline next year.