Mon, 20 May 2019

Pound plummets as ministers quit UK government

By Jay Jackson, Perth News
15 Nov 2018, 21:56 GMT+10

LONDON, UK - The British pound has tumbled on foreign exchange markets after a number of ministers resigned from Prime Minister Theresa May's cabinet, threatening her government.

The resignations followed approval by the cabinet less than 24 hours previously of a deal for the UK to withdraw from the European Union.

The most impacting resignation came from Brexit Secretary Dominic Raab who was closely involved in documentingthe agreement that he has now objected to.

The British pound, which had zoomed up and past the 1.3000 handle on news of the cabinet approval late Wednesday night, plummeted as the resignations began to be announced.

The pound fell more than1.50% to hit a low of 1.2729. At the time of writing, the unit has recovered a portion of the loss to be trading at 1.2795.

The euro also fell to a low of 1.1270 from a high on the day of 1.1352. At the time of writing the EU unit was quoted at 1.1310.

Most other currencies remained unaffected.

Update: 6:00pm local time.

Theresa May has completed a press conference at 10 Downing Street, vowing to carry on and to deliver the best Brexit deal that can be agreed with the EU "that is in the national interest."

At 6:00pm Thursday in London the pound has been consolidatimng and was last quoted at 1.2789.

The euro has strengthened to 1.1324.

On the London Stock Exchange the FTSE 100 finished in positive territory, gaining 4.22 points or 0.06% to close at 7,038.01.

More Perth News

Access More

Sign up for Perth News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!