Plummeting pound amid market chaos

THE pound plunged as yesterday’s turmoil sparked fresh fears of a no-deal Brexit.

Sterling suffered one of its biggest falls of the year, dropping nearly 2% against the dollar and euro, amid market volatility.

With growing uncertainty over Theresa May’s position, business chiefs warned about the dangers of leaving with no deal.

One expert, Chris Turner at City firm ING, predicted the pound could drop another 3% to 4% “unless the threat of a leadership election is quashed, or there are clear signs that the withdrawal agreement can garner more support in Parliament”.

On the stock market, shares in firms heavily exposed to the UK economy fell sharply. Royal Bank of Scotland saw its worst one-day loss since the 2016 Brexit vote, with its share price down nearly 10%.