Pound sinks to six-week low as Theresa May prepares to meet 1922 Committee
The pound has fallen to a six-week low as Theresa May prepares to meet rebellious Conservative MPs amid fears of a no confidence vote.
Sterling fell 0.6 per cent on Wednesday hitting $1.2902 – the lowest level since the beginning of September.
The Prime Minister will face down critics from her own party when she meets the 1922 Committee of Conservative backbenchers later today.
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It comes amid several attacks from Tory MPs regarding May's Brexit strategy and reports letters of no confidence have been sent to the committee's chairman.
The pound had rallied on Tuesday on reports the deadlock may soon be broken over the Irish border dispute.
But the currency resumed its slide on Wednesday as the EU's Brexit coordinator Guy Verhofstadt also warned the withdrawal agreement – needed to avoid a no-deal – was “0 per cent done” until the border issue was resolved.
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“A rally in the pound yesterday afternoon on reports of a breakthrough in the Irish border dispute has proved short lived with sterling coming back under pressure today and falling below the $1.30 handle,” David Cheetham, chief market analyst at XTB Market said.
“Politics continues to weigh on the pound with Theresa May’s position remaining under near constant threat,” he added.