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Sterling descends 1% amid fears of no-deal Brexit

Sterling drops amid fears of no deal Brexit

The British Pound extended its losses for third straight session, losing 1 percent against the US dollar on Monday, to hit its lowest level since mid-march 2017, amid rising possibilities of a no-deal Brexit.

Global markets have stepped up their preparations for a 'no deal' Brexit, as a daunting challenge awaited the new Prime Minister Boris Johnson.  

The fall of the British currency amid the adoption of a number of aides to the new Prime Minister Boris Johnson, steps towards the implementation of the Brexit without deal.

Last week, Boris Johnson was elected leader of the British Conservative Party and then head of the UK Council of Ministers.

During a visit to Scotland, Mr Johnson said the existing withdrawal agreement negotiated with European leaders was "dead" and had "got to go". EU member nations have said renegotiating the deal is not an option.

Johnson would not meet EU leaders to discuss a revised deal unless they accepted his preconditions, which include reopening the withdrawal treaty and cancelling controversial Irish support.

However, Johnson promised that the Brexit would be held on time, October 31.

As of 20:25 GMT, the pound declined against the US dollar to $1.22631, while it plummeted 1.04 percent against the euro.

The US dollar index, which measure the US dollar against six major currencies, moved up by 0.20 percent to 98.11

Later in the week, the Bank of England will decide on interest rates, and the BOE will release its latest growth and inflation forecasts.

While the BOE is widely anticipated to hold rates at 0.75 percent, the economic outlook may reflect the impact of the Brexit.

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