Weakness of the currency buoys the FTSE 100
which climbs back over 7,000
Financial Times
By: Michael Hunter
and Joel Lewin
Sterling tumbled to another post Brexit vote low against the dollar in early trading on Tuesday, as theUK government’s setting of a timetable for negotiations to leave the EU ruptured
the recent stability for a currency now caught in political crosshairsThe currency fell as much as 0.8 percent to $1.2734, taking its decline this week to more than 1.6 per cent at the low
point of the session, which represented another 31-year trough
The declines accelerated after it breached $1.2796, which had been the weakest level since the EU vote in lateJune, although as the session developed,sterling pared its loss somewhat to
$1.2747, a fall of 0.7 per cent on the day.Renewed weakness for the pound follows Prime Minister Theresa May’s speech to the Conservative party conference on Sunday, which investorsseized on as pointing to a so-called hard
Brexit that prioritises Britain’s controlof immigration policy over full access toEurope’s single markets
“The pound’s drop is likely to be
a series of spaced out depreciations,
with the trigger for weakness being
each piece of new information on
the economic sacrifice that the UK
government is willing to take on the path
to Brexit,” said Koon Chow, macro and
FX strategist at UBP
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