Sterling falls due to strong dollar amid Brexit uncertainty
The British pound fell below $1.29 for the first time in more than two weeks on Thursday as broad dollar strength prompted traders to move to the sidelines before a central bank meeting and growing Brexit uncertainty.
With a Brexit deal still not in the bag, the Bank of England's rate-setters is expected to vote unanimously to keep their benchmark borrowing rate at 0.75 per cent and trim their growth forecasts, according to a Reuters poll of economists. "Broad dollar strength and rising nerves on Brexit negotiations are weighing on the pound," said Morten Helt, a currency strategist at Danske Bank.
The pound briefly fell through $1.29 for the first time since Jan. 22 before trimming some losses. It was trading down 0.2 per cent at $1.2908. Against the euro, the pound was a shade weaker at 87.88 pence. Prime Minister Theresa May will call on the European Union on Thursday to work with her to change the Brexit divorce deal and help her win the support of a divided parliament to smooth Britain's departure from the bloc.
On Wednesday, European Council President Donald Tusk had said the EU would make no new offer on Brexit and those who promoted Britain's exit without any plan of how to deliver it deserve a "special place in hell". (Reporting by Saikat Chatterjee; Editing by Toby Chopra)
(With inputs from agencies.)
- READ MORE ON:
- Commitments of Traders
- Flow Traders
- Traders Village
- British Embassy
- British Empire
- British English
- European Union
- Theresa May
- Production–possibility frontier
- Opportunity cost
- Gross domestic product
- Bank of England
- Donald Trump
- Donald Tusk
- Pound sterling
- Thomson Reuters
- Thomson Reuters Corporation
- Reuters Instrument Code
- Danske Bank
- Online banking
ALSO READ
EU, Britain and Spain to hold more talks on post-Brexit status of Gibraltar
EU, Britain and Spain say significant progress made in talks on post-Brexit status of Gibraltar
FOCUS-New Brexit border checks could stifle fine food imports from EU, warn sellers
FACTBOX-What are the new post-Brexit border controls starting on April 30?
UK lawmakers seek urgent clarity on new post-Brexit border controls