Sterling on backfoot as political turmoil dogs Brexit process | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
May 21, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, MAY 21, 2025
Sterling on backfoot as political turmoil dogs Brexit process

World+Biz

Reuters
03 September, 2019, 10:10 am
Last modified: 03 September, 2019, 10:21 am

Related News

  • Big UK inflation drop bolsters bets on Bank of England cuts next year
  • Britain delays post-Brexit border checks on EU goods till 2024
  • Brexit to blame for a third of Britain's food bill rise
  • Sunak in Belfast to secure support after UK, EU seal 'decisive breakthrough' on NI
  • Reactions to UK-EU Brexit deal on Northern Ireland

Sterling on backfoot as political turmoil dogs Brexit process

The euro fell to the lowest in more than two years as weak economic data from the EU underscored expectations for the European Central Bank

Reuters
03 September, 2019, 10:10 am
Last modified: 03 September, 2019, 10:21 am
Wads of British Pound Sterling banknotes are stacked in piles at the Money Service Austria company's headquarters in Vienna, Austria, November 16, 2017/ Reuters
Wads of British Pound Sterling banknotes are stacked in piles at the Money Service Austria company's headquarters in Vienna, Austria, November 16, 2017/ Reuters

Sterling wallowed near a more than two-year low on Tuesday on growing investor worries about a "no-deal Brexit" as rival British lawmakers fought for control over negotiations to leave the European Union.

The euro fell to the lowest in more than two years as weak economic data from the EU underscored expectations for the European Central Bank to ease monetary policy at a meeting next week.

The yuan will come into focus during Asian trading after it slipped to a record low versus the dollar in offshore trade due to fading hopes for a resolution to the US-China trade war.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The pound is likely to remain under pressure ahead of a vote in Britain's parliament about Brexit later on Tuesday, the outcome of which could trigger an early election and Britain's exit from the EU without trading agreements.

A messy exit from the EU is certain to weaken the pound, but it could roil other currencies as investors adjust their positions to exit trades in riskier assets.

"The pound is being sold all over the place, because the political risk has forced us to recognise that a no-deal Brexit is possible," said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.

"At this point, I see no reason to stay long in sterling."

Sterling traded at $1.2063, flat so far in Asian trading but close to the lowest in more than two years. The pound tumbled 0.8% on Monday, its biggest decline in more than three weeks.

The euro was flat at 90.91 pence, holding onto a 0.7% gain on Monday.

A group of lawmakers will put forward a vote on Tuesday on whether to seize control of the parliamentary agenda to try to force a three-month delay to Britain's EU exit deadline of Oct. 31.

Johnson raised the stakes on Monday, however, effectively turning it into a confidence vote by making it clear that if the government was defeated, it would hold a vote on Wednesday to approve an early election, most likely to be held on Oct. 14.

Some politicians have warned that a no-deal Brexit should be avoided at all costs, because leaving the EU without trading agreements in place could cause economic turmoil.

Elsewhere in currency markets, the dollar index rose 0.27% on Tuesday to 99.082, reflecting weakness in other major currencies. US financial markets were closed on Monday for a public holiday.

In the offshore market, the yuan traded at 7.1940 per dollar, close to its weakest since international trading in the currency began in 2010.

The yuan weakened after Bloomberg News reported that Chinese and US officials are struggling to agree a schedule for a round of trade negotiations that were expected this month.

The United States and China have been locked in a bitter trade dispute for more than a year, which is causing the global economy to slow.

The euro fell to $1.0954 in Asia on Tuesday, which is the lowest since May 2017. The common currency fell 0.2% on Monday. Sentiment for the euro had already weakened after it broke below the key $1.1000 level last week.

The euro weakened further after a survey on Monday showed European manufacturing contracted for seven straight months.

The Australian dollar fetched $0.6712, down 0.07% in early trade.

The Reserve Bank of Australia is expected to keep its cash rate at a record low of 1% on Tuesday, though it will likely cut again two more times to boost inflation and support a stuttering economy, a Reuters poll showed.

Global Economy

Sterling / Brexit

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Infograph: TBS
    How Renata's Tk1,000cr investment plan became a Tk1,400cr problem
  • A file photo of the NBR Bhaban in Agargaon, Dhaka
    Bangladesh moves to scrap import taxes on 100 items to boost trade with US
  • Govt to cut property registration tax by 40%, align deed value with market rates
    Govt to cut property registration tax by 40%, align deed value with market rates

MOST VIEWED

  • Photo: TBS
    Who should run Bangladesh's busiest container terminal?
  • Demra Police Station officials with singer Mainul Ahsan Noble following his arrest from Dhaka's Demra area in the early hours of 20 May 2025. Photo: DMP
    Singer Noble arrested, sent to jail after woman allegedly confined, raped by him for 7 months rescued
  • Saleh Uddin Ahmed. Sketch: TBS
    Large depositors in troubled banks to be offered shares, bonds: Salehuddin
  • Photo shows actress Nusraat Faria produced before the Chief Metropolitan Magistrate (CMM) Court on Monday, 19 May 2025. File Photo: Focus Bangla
    Nusraat Faria gets bail
  • Faiz Ahmad Taiyeb, special assistant to the chief adviser at the Ministry of Posts, Telecommunication and Information Technology speaks at a press briefing at the Foreign Service Academy on Tuesday, 20 May 2025. Photo: PID
    NoC is mandatory in installing Starlink connections: Taiyeb
  • Starlink could bring revolutionary changes to Bangladesh’s education, healthcare, business, and disaster management sectors. Photo: Collected
    Starlink now in Bangladesh: Package starts from Tk4,200 per month

Related News

  • Big UK inflation drop bolsters bets on Bank of England cuts next year
  • Britain delays post-Brexit border checks on EU goods till 2024
  • Brexit to blame for a third of Britain's food bill rise
  • Sunak in Belfast to secure support after UK, EU seal 'decisive breakthrough' on NI
  • Reactions to UK-EU Brexit deal on Northern Ireland

Features

Football presenter Gary Lineker walks outside his home, after resigning from the BBC after 25 years of presenting Match of the Day, in London, Britain. Photo: Reuters

Gary Lineker’s fallout once again exposes Western media’s selective moral compass on Palestine

10h | Features
Fired by US aid cuts, driven by courage: A female driver steering through uncertainty

Fired by US aid cuts, driven by courage: A female driver steering through uncertainty

17h | Features
Photo: TBS

How Shahbagh became the focal point of protests — and public suffering

1d | Panorama
PHOTO: Collected

Helmet Hunt: Top 5 half-face helmets that meet international safety standards

2d | Wheels

More Videos from TBS

Western world warns Israel over aid blockade and military operation

Western world warns Israel over aid blockade and military operation

10h | TBS World
Atrai dam breaks for the second time within 4 months

Atrai dam breaks for the second time within 4 months

10h | TBS Today
How is China the 'winner' of the India-Pakistan conflict?

How is China the 'winner' of the India-Pakistan conflict?

12h | Others
Why ADP implementation rate lowest in education and health sectors?

Why ADP implementation rate lowest in education and health sectors?

12h | Podcast
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net