The pound has slumped to an 11-month low of $1.286 against the US dollar amid a sell-off fueled by growing investor concern that Britain will crash out of the EU without a trade deal.
Against the Euro, sterling has fallen below 90 pence for the first time since November 15th last year.
“Right now we’re short of any meaningful news flow and uncertainty is high — that’s not a good thing,” said Jordan Rochester, an analyst at Nomura International Plc. “Whilst this Brexit hedging continues to take place and the data are yet to turn materially higher to warrant an early hike from the Bank of England, the pound will be on the back foot and head lower.”
Just last week, trade secretary Liam Fox had said that Britain was likely to leave the EU without a deal and the risk of a no-deal Brexit had increased to as much as 60 per cent.