Pound rebounds after Brexit upheaval rout

The pound rebounded slightly yesterday after Britain’s currency was hammered by Brexit fears, while stock markets diverged and oil prices rallied once more. Around 1145 GMT, the pound was up about 0.35 per cent against the dollar and euro. The UK currency had slumped 1.7 per cent against the dollar on Thursday, the biggest drop for more than two years. The same day, the euro jumped 1.9 per cent against the pound, its strongest performance since June 2016, or immediate aftermath of the Brexit referendum.

“Stability in the pound ... could be short-lived, with clamours for a vote of no confidence from Conservative Brexiteers meaning the political upheaval will continue as we end the week,” noted Joshua Mahony, market analyst at IG trading group.

British Prime Minister Theresa May faced the public yesterday to defend her Brexit deal, as she battles to salvage the agreement and her own political future.

May made a rare outing on a radio phone-in during which she faced a call to step down after a tumultuous Thursday in which ministers resigned and members of her own party plotted to oust her.

Brexiteer MPs fear the draft deal would keep Britain shackled to Brussels, while EU supporters say it would leave the UK on worse terms than it has inside the bloc.