Pound falls after Prime Minister’s Brexit comments

More news on Brexit…

The value of the pound has fallen further to a two-month low against major currencies after Prime Minister Theresa May indicated the UK would pursue a “hard Brexit”.

The sterling fell about one per cent across the board.

The PM told Sky News on Sunday that she would like to obtain the best possible deal for leaving the EU.

She disagreed that the UK could “keep bits of membership”.

She said: “We’re leaving. We’re coming out. We’re not going to be a member of the EU any longer.”

May’s stance on the issue suggested that the PM would not seek to keep the UK within the EU’s single market. This move could have profound affects on the country’s economy.

Later, the pound was down 1.06 per cent against the dollar at $1.2155. Against the euro, it was 0.89 per cent lower at €1.1561.

Neil Wilson, senior market analyst at ETX Capital, said: “Sterling is on the back foot on Monday after Theresa May’s comments were taken as a sign the UK government would prioritise immigration controls over single market access,”

“Domestic populist politics trumps the trade card for now, it seems, and that is weighing on the pound.”

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