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Sterling falls to 1-1/2 year lows on reports May to pull Brexit vote

Published 10/12/2018, 12:23
Updated 10/12/2018, 12:23
© Reuters. UK pound coins plunge into water in this illustration picture

LONDON (Reuters) - The British pound fell to its lowest level since June 2017 on Monday on media reports British Prime Minister Theresa May would pull a parliamentary vote on her Brexit deal.

Sterling slid half a percent to $1.2656

The pound also extended its losses versus the euro, trading down 0.7 percent at 90.18 pence (EURGBP=D3) - its weakest since early September.

Britain's exporter-heavy FTSE 100 (FTSE) index climbed as sterling fell, up 0.1 percent by 1150 GMT. The more domestic FTSE 250 (FTMC) index tumbled, down 1 percent as the reports May could delay the parliamentary vote triggered renewed uncertainty.

Perceived safe-haven British government bonds rallied on the news, with 30-year yields (GB30YT=RR) dropping as much as 7 basis points on the day to a 3-month low of 1.759 percent, while five-year yields (GB5YT=RR) fell to their lowest since January at 0.827 percent.

(This story corrects 30-year yield in paragraph 5.)

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