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British pound sinks on reports of Brexit vote delay


FILE PHOTO: Pound Sterling notes and change are seen inside a cash register in a coffee shop in Manchester, Britain, September 21, 2018. REUTERS/Phil Noble/File Photo

Pound sank Monday on reports that Prime Minister Theresa May will delay a Brexit deal vote on the eve of what was forecast to be a “huge” defeat, dealers said.

The currency was rocked as government sources indicated that the parliamentary vote was postponed, but there was no official confirmation with May set to address MPs at 1530 GMT.

At 1422 GMT, the pound dived to $1.2606 — which was the lowest level since June 2017.


And the euro was propelled to 90.47 pence, reaching a point last seen at the start of September.

“The pound has dropped … on the back of news reports that UK Prime Minister Theresa May is going to delay Tuesday’s parliament vote in order to avoid a huge defeat,” noted analyst Faward Razaqzada.

“Several ministers have apparently pushed for the delay so that Mrs May can seek extra clarification from EU on the backstop agreement.”

Monday’s fast-moving newsflow has increased uncertainty over whether Britain will agree any terms with the European Union before it leaves the bloc in March next year.

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