Monday, 22 October 2018 23:08 WIB |
Sterling fell on Monday as fears grew that the Irish border issue and disagreements within Britain's ruling Conservatives over Brexit could see Prime Minister Theresa May face a serious leadership challenge.
The pound lost ground against the dollar and the euro, at one point falling close to 1 percent to the greenback, though it later clawed back some of the losses.
Sunday newspapers quoting unnamed lawmakers as saying May should prepare for a challenge to her leadership.
By 15:30 GMT, sterling was down 0.65 percent, having earlier hit a low of $1.2957, its weakest since Oct. 4.
Against the euro, the pound was down 0.3 percent, well off earlier lows of 88.57 pence which had been a 2 1/2-week low.
Jittery markets closely watched May™s speech to parliament, at which she is expected to say that 95 percent of the Brexit divorce deal has been settled. But she will maintain opposition to the European Union™s proposal for the land border with Northern Ireland.
However, her proposal to extend a status-quo transition period beyond the current proposed date of December 2021 has angered the eurosceptics in her party.