July 31, 2019
The pound plunged further toward $1.21 on Tuesday morning as rhetoric from Britain’s new Prime Minister Boris Johnson heightened concerns that the U.K. could leave the European Union without a deal on October 31.
By Tuesday afternoon, sterling had recovered slightly from its early depths to trade at around $1.2176, another 0.4% down on Monday’s close, having fallen as low as $1.2120 overnight to reach its lowest level against the greenback since March 2017.
Johnson’s new team of ministers have been keen to espouse the message that the U.K. is now preparing for a no-deal departure , a move expected by many to be a “cliff-edge” scenario which could profoundly damage the British economy.
The prime minister said Monday that the current withdrawal agreement between Britain and the EU is “dead.”
Sterling has fallen against the euro for 12 consecutive weeks, and the brief and tepid signs of a relief rally on Tuesday failed to dampen pessimism from analysts over the outlook for the pound.
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