LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Pound hits 20-month low after Britain's May aborts Brexit vote

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Mon, Dec 10, 2018
10:39 pm
Reuters
RELATED NEWS
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21
Budget 2021: HDFC Bank, other banks hail FM Sitharaman for these reasons; check details Budget 2021: HDFC Bank, other banks hail FM Sitharaman for these reasons; check details

Sterling tumbled to its weakest since April 2017 on Monday after Prime Minister Theresa May pulled a parliamentary vote on her Brexit deal with the European Union, panicking investors about deepening political uncertainty in Britain.

May said on Monday she was delaying the planned vote as her deal would likely be rejected "by a significant margin". Colleagues had told May that she faced a rout in the vote, that was set for Tuesday.

The move thrusts Britain`s exit from the European Union into further confusion, with possible options including a disorderly no-deal Brexit, another referendum on EU membership, or a last minute renegotiation of May`s deal with Brussels.

May said she would do all she could to secure further assurances from the EU on the so-called backstop arrangement, a crucial part of the deal bitterly opposed by many of her fellow conservatives and opposition parties.

"Uncertainty is the only thing hitting the pound at the moment," said Kallum Pickering, an economist at Berenberg.

The pound fell 1.6 percent against the dollar to as low as $1.2507, the majority of the losses coming after May confirmed she was delaying the vote.

Against the euro, the pound dropped 1.5 percent to as weak as 90.875 pence, its lowest since August.

"Britain`s exporter-heavy FTSE 100 index, which usually rises when sterling falls, succumbed to widespread selling pressure and fell 0.8 percent as investors fretted about the consequences of the political chaos for UK companies." The more domestic FTSE 250 index tumbled nearly 2 percent.

Perceived safe-haven British government bonds rallied, with 10-year British government bond yields falling 7.5 basis points to 1.19 percent, the lowest since mid-August.The pound has fallen for four consecutive weeks with traders struggling to comprehend the vote options and consequences.

Earlier, the EU`s top court had ruled on Monday that Britain could unilaterally reverse its decision to leave, easing concerns about Britain crashing out of the bloc in March without a deal.

But analysts said sterling`s weakness on Monday reflected deepening uncertainty as well as concerns about May`s future as prime minister.

"May is now expected to make a late dash to Brussels in a frantic bid to renegotiate the deal but her position is no doubt becoming increasingly untenable," said David Cheetham, market analyst at online broker XTB.

Before the vote was delayed, analysts had been focusing on the number of votes May could win or lose by and what that could mean for her chances of renegotiating a deal.

Some analysts saw a silver lining.

Pickering at Berenberg said that he believed May`s delayed vote would end with the British parliament gaining a greater say on the withdrawal agreement and the sort of Brexit that the UK gets.

"This is ultimately a process towards softer Brexit so the pound is reacting more to the uncertainty because, from my point of view, this is mostly a positive development," he said.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21
Budget 2021: HDFC Bank, other banks hail FM Sitharaman for these reasons; check details Budget 2021: HDFC Bank, other banks hail FM Sitharaman for these reasons; check details

LATEST NEWS

EPFO Members Alert! EPF contribution rule may change if government accepts this labour union's demand

Your WhatsApp will stop working if you don't do this - Check last date for required action

Tech glitch stops NSE trading; Stock Exchange reacts, promises quick action | Watch Anil Singhvi on trading HALT, 'kiski' FAULT

ACC, UltraTech Cement, Shree Cement, Ramco Cement and more: Centrum Broking highlights details for Investors

Attention NEET 2021 candidates! Check expected exam date

BOOSTER dose for Yes Bank! CDP rates ‘A-' (Leadership Band); achieves Environmental Management System certification for eighth year

Big message! PM Narendra Modi says government has no business to be in business

SolarWinds, Microsoft, FireEye, CrowdStrike defend actions in major hack - U.S. Senate hearing

Get free BSNL SIM cards! Offer open for limited period only - RUSH

Massive Update! PUBG Mobile 2 may launch next week | Check availability, download link and more NOW!

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved