Sterling plunges as fears rise of no-deal Brexit
The pound tumbles 1.3% — its biggest daily drop since December 2018
London — The pound plunged on Thursday and was heading for its biggest one-day fall this year on growing fears of a “no-deal” Brexit should British MPs hold firm in their rejection of Prime Minister Theresa May’s EU divorce deal. While a broad-based rally in the dollar also weighed on the pound, traders said the risks of a no-deal Brexit have grown in the past 48 hours, sending the British currency falling across the board and kicking bond yields lower. “A dollar rally and a broad unwinding of long sterling positions across the board after the recent rally is weighing on the pound as the various Brexit positions become more polarized,” said Neil Jones, head of hedge fund currency sales at MUFG based in London. Sterling tumbled 1.3% to $1.3004, its biggest daily drop since December 2018. It has fallen nearly 3% from a nine-month high of near $1.34 hit last week. It also weakened 0.8% to 87.15p against the euro. May has asked European Union leaders to delay Brexit from March 29 until ...
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