GulfBase Live Support
Sterling slid to a nine-month low against the euro on Wednesday as investors sold the currency fearing Britain could soon leave the European Union without securing a trade deal.
Sterling has slumped recently due to traders hedging against what they see as the growing chances of the currency plummeting if Britain crashes out of Europe in less than eight months’ time.
The pound sank to an 11-month low versus the dollar on Monday after Britain’s trade minister Liam Fox suggested the UK could leave the EU in March without an agreement to ensure future relations with the bloc, its biggest trading partner.
“A lot of companies can’t wait for the negotiations outcome in October so a lot of course are trying to hedge against drop in the pound,” said Christophe Barraud, an economist at Market Securities brokerage in Paris.
Sharp rises in the euro and the dollar recently have exacerbated the pound’s woes. Sterling fell 0.2 per cent to as low as 89.84 pence, its weakest since the middle of November.
The pound also slipped to a fresh 11-month low against the dollar of $1.2912, falling below Monday’s low of $1.2920. British Prime Minister Theresa May will meet with fellow EU leaders in October to try to seal deals on the terms of Britain’s withdrawal. “We remain bearish on the pound in the short term until the Brexit mess is out the way and look for the currency to enter a $1.27-1.28 range before the leaders summit,” said Nomura strategist Jordan Rochester.
The pound has fallen more than 10 per cent since mid-April, and with the government yet to agree a divorce deal with Brussels, currency traders are growing edgy about its outlook.
Traders are now preparing for Friday’s reading of second-quarter British economic growth numbers for clues as to where sterling is headed next.
The Omani rial’s effective exchange rate index rose by 3.2 per cent to 104.3 points as of the end of September 2018 compared to 101.1 points in the same month in 2017, indicating the currency has enh
Times of Oman
The pound dropped to its weakest level in almost 18 months and government bonds rallied as UK Prime Minister Theresa May was said to have called off a crucial vote in Parliament on her Brexit deal.
Sterling jumped on Tuesday after a senior European Union legal adviser said Britain could unilaterally withdraw its Brexit notice, easing concern among investors about Britain crashing out of the blo
Pound vigilantes may not have enough ammunition to force parliament to pass Prime Minister Theresa May’s Brexit deal even in a second vote, influential investors say. Speculation has been growing tha
The Bank of England on Wednesday warned a no-deal Brexit would trigger a financial crisis in Britain, causing the pound to plunge by 25 percent. The central bank also said in a report that such a sce