Section:GDN 1N PaGe:13 Edition Date:190906 Edition:01 Zone: Sent at 5/9/2019 20:45 cYanmaGentaYellowbl
Friday 6 September 2019 The Guardian •
13Jasper JollyThe pound hit its highest level in fi ve
weeks against the US dollar yesterday
as investors reacted to the diminish-
ing likelihood of a no-deal Brexit after
a string of government defeats.
The pound reached $1.2353 just
before midday, its highest point since
29 July, in the wake of Wednesday’s
vote in parliament to block a no-deal
Brexit and Jo Johnson’s shock resigna-
tion from his brother’s government.
The move represented a 3% turn-
around from earlier in the week.
Sterling plunged to a three-year low
below $1.20 on Tuesday, as investors
priced in heightened uncertainty after
Downing Street’s call for an election if
rebel MPs blocked a no-deal Brexit.
Against the euro the pound hit
€1.1171 yesterday, the strongest price
it has achieved since 26 July.
Sterling remains one of the most
sensitive barometers of the risks ofa disruptive Brexit, which the vast
majority of economists believe would
be damaging to the British economy.
David Page, a senior economist
at AXA Investment Managers, said a
delay to the scheduled departure date
was now the most likely outcome.
Sterling remains almost 7% lower
than the day that Johnson’s predeces-
sor, Theresa May, took offi ce, and 16%
weaker than the start of 23 June 2016,
the day of the EU referendum.
Richard Falkenhäll , a currency
strategist at the Nordic bank SEB,
said Johnson’s defeats may only off er
temporary relief. “We expect renewed
weakness in the pound once the elec-
tion is under way, as the outcome will
be impossible to predict, and could
be anything from a ‘leave’ parliament
accepting a no-deal departure to a
Labour majority .”Sterling
Pound hits
highest level
in fi ve weeks
Source: RefinitivThe pound has reached its
highest point against the dollar
in five weeks
Value of £1 in US dollars1.1.1.1.1.1.1.1.Jan Mar May Jul SepRELEASED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws