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Bloomberg
The pound fell to the lowest since 2017 as the market once again reckoned with no-deal Brexit risk after the contenders to be UK prime minister toughened their rhetoric.
Sterling hit its weakest level in more than two years versus the dollar and a six-month low against the euro, as Brexit negotiations appeared to turn more hostile. Both leadership contenders Boris Johnson and Jeremy Hunt have said the so-called backstop plan to avoid a hard border in Ireland, considered essential by Brussels, would need to be scrapped.
The UK currency extended its slide after Sky News reported that Johnson’s team was considering sending lawmakers home for up to two weeks in October to prevent them from blocking a no-deal Brexit. After a strong start to the year, the pound is the worst performer in the Group-of-10 in recent months and is at the lowest ever for this time of year.
“It’s a bit of a perfect storm for the pound today,†said Neil Jones, head of hedge fund currency sales at Mizuho Bank Ltd.