The pound's had another bad day thanks to political uncertainty

Emma Haslett
Follow Emma
Heads Of State Attend The European Council Meeting
Falling down: The pound had a bad week on political uncertainty. (Source: Getty)

The pound had fallen sharply against both the dollar and the euro as the closing bell sounded on the equity market, having taken a beating thanks to rumours of a backbencher plot to oust Theresa May.

Sterling was down 0.6 per cent against the dollar at $1.3037 as the as the market closed, and down 0.7 per cent against the euro, at €1.1121.

Although the currency's slide began with May's woes after her troubled conference speech on Wednesday and today's plot by 30 Conservative MPs to oust her, stronger than expected wage growth in the US helped to push sterling even lower against the dollar.

"The dollar reacted [to the figure] as one would expect, widening its gains against the pound to 0.6 per cent, while taking 0.1 per cent off the euro and half a per cent off the yen," said Connor Campbell, financial analyst at SpreadEx.

"And what of poor, fragile sterling? Well September’s super surge is looking more and more like an anomaly, the Tories once again finding a way to undermine confidence in the currency.

"Cable’s stuck at a sub-$1.305 one month nadir, while against the euro the pound has cemented a fresh three-week low after falling half a per cent. And the thing is, there is no guarantee that next week will be any better, especially if the weekend papers are as filled with Tory infighting as one would expect."

The news was a little better for the FTSE 100, which finished the day 0.2 per cent higher, at 7,522 points. It was pushed up by pharma stocks, including NMC Health and Mediclinic, which rose 4.2 per cent and 3.2 per cent respectively, as well as publisher Pearson, which rose 2.3 per cent.

Read more: Hawkish noises from BoE and Carney aimed at boosting pound says S&P

Related articles