The pound has hit a three-year low against the dollar as MPs prepare to delay Brexit following Prime Minister Boris Johnson’s interventions.
It fell below $1.20 to its lowest since October 2016 before recovering. Against the euro, it is worth less than €1.10.
“There is only one thing on investors’ minds today: the sinking pound. A drop in sterling below $1.20 for the first time since 2017 weighs on the UK-focused FTSE 250 index and drags it down 0.1% to 14,463. It is also bad news for UK domestic FTSE 100 stocks including the housebuilders, supermarkets and various banks.
“The market hates uncertainty and that extends to politics. The current chaos around the UK exiting the EU threatens to push down sterling even further unless we get a clear idea of what is happening and when,” says Russ Mould, investment director at AJ Bell.