Pound Slumps Back Down On Brexit Reality Check

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2019-10-17 HKT 21:35

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  • Johnson's bravado may prove premature. Photo: AP

    Johnson's bravado may prove premature. Photo: AP

Sterling sank into losses in chaotic trade on Thursday, over fears that a new Brexit deal might not win parliamentary approval, having earlier spiked close to US$1.30 on news of the agreement.

At 12.40 GMT, the pound was down 0.34 percent against the dollar at $1.2788. The euro meanwhile rose 0.69 percent to 86.88 pence.

Independent economist Julian Jessop said: "After the initial relief that the UK government and EU have done a deal, markets are worried that it still does not have enough support to get through parliament on Saturday," .

The British currency had earlier been catapulted to a five-month peak as news flashed across traders' screens that the European Union and Britain had reached withdrawal agreement.

Prime Minister Boris Johnson will still have to take the accord to a sceptical parliament for its backing on Saturday, when it meets for a special sitting.

The pound had already stumbled in earlier Thursday morning trade after Johnson's allies in Northern Ireland's Democratic Unionist Party (DUP) pre-emptively rejected the compromise deal. And, since the deal was announced, the DUP has declared that it was "unable to support" Johnson's draft accord. (AFP)