Economic news

Pound recovers as PM May stays on course

Sterling reversed declines on Friday after Prime Minister Theresa May confirmed she would get the Brexit deal signed, despite a number of ministers resigning.

Photo: Reuters

The British currency changed hands at $1.2790 after slumping 1.6 percent overnight. It suffered its largest one-day decline versus the euro since October 2016 and was last traded at 88.60 pence.

The political turmoil would continue affect the currency as long as ‘no deal’ remains as likely as it is, analysts say.

Without an agreement, Britain would move in March from unique trade with the EU to customs conditions set by the World Trade Organization for external nations, which could trigger anxiety in financial markets.

The euro inched up 0.2 percent to $1.1356. Investors digested recent comments from Italian Prime Minister Giuseppe Conte who said he would collaborate with the EU over his government’s 2019 spending plan.

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