Yahoo Finance Pound plunges against US dollar over rising fears of no-deal Brexit
The pound has fallen sharply against the dollar and the euro as fears over a no-deal Brexit grew following the shock departure of the Government's legal head.
Sterling plunged 1.6 per cent to just over $1.30, its lowest level for almost a month and the steepest fall since March.
Against the euro, The pound fell 1.5 per cent to €1.11 on Tuesday.
It came after Sir Jonathan Jones, the head of the Government Legal Department, resigned amid reported anger over suggestions Boris Johnson is planning to override elements of the Brexit Withdrawal Agreement.
Critics of Mr Johnson’s proposed new legislation say that it will undermine the withdrawal agreement with the EU which is an international treaty signed by the UK less than a year ago. They argue that it will lower the UK’s standing in the world by calling the government’s trustworthiness.
Mr Jones’ resignation is the latest in a string of resignations of top civil servants.
Experts warned the pound could drop to as low as $1.20 if the prospect of a no-deal exit becomes more likely over the coming weeks.
That outcome is expected to substantially impact UK firms’ ability to trade with the EU, imposing extra costs on doing business at a time when the economy has gone through its deepest slump on record.
