The pound falls 0.5% against the dollar to an almost three-week low in the immediate aftermath of Theresa May’s third Brexit defeat amid market ‘no-deal’ fears
The British pound fell 0.5 per cent today against the dollar and euro in the immediate aftermath of Theresa May’s latest Brexit deal defeat.
The drop to an almost three-week low comes after the currency had been buoyed in recent weeks by hopes that the likelihood of an abrupt No Deal Brexit was receding.
But it fell to as low as $1.2977 this afternoon as MPs in Westminster rejected Mrs May’s Brexit deal for a third time today, sounding its probable death knell.
The British pound fell against the dollar to an almost three-week low after the Brexit defeat
This graph shows the five-day performance of the pound against the dollar
The defeat by 58 votes in the House of Commons left Britain’s withdrawal from the European Union in turmoil on the very day it was supposed to leave.
Brexit is on course for a lengthy delay after MPs voted by 344 to 286 against the deal as hundreds of protesters staged a noisy demonstration outside.
The result of the crunch vote means that the UK has missed an EU deadline to secure an extension of the Brexit process and leave with a deal on May 22.
Mrs May now has until April 12 to go back to Brussels with new proposals and seek a longer extension to the negotiation, or see the UK leave without a deal that day.
Prime Minister Theresa May said in the House of Commons today that the implications of the vote were ‘grave’ adding: ‘I fear we are reaching the limits of the process in this House’
With a clear majority in the Commons against No Deal, and with MPs once more seizing control of the timetable on Monday, Mrs May said that the UK would have to find ‘an alternative way forward’.
This was ‘almost certain’ to involve the UK having to stage elections to the European Parliament in May, she said.
Mrs May said that the outcome was ‘a matter of profound regret’.