Sterling dropped to its lowest level in three decades on Tuesday, after Prime Minister Theresa May set a date by which Britain will have left the EU.
The currency fell heavily on Monday and pushed down another 0.5 percent on Tuesday, hitting its weakest level since June 1985.
Connor Campbell, financial analyst at SpreadEx, told the BBC
“The pound’s perilous position has continued this Tuesday, with sterling still suffering from the aftershock of Theresa May’s (hard) Brexit promises.
“Just like yesterday the UK index’s rise will be tested by a PMI reading, with this morning the turn of the construction sector. While the manufacturing and services PMIs have recently been a source of comfort, the construction survey has lagged behind, missing out on last month’s surprise boost to remain in contraction territory.
“September’s reading is meant to be even worse.”
However, sterling’s fall is good news for the FTSE 100 index, which broke the 7,000 point barrier at the beginning of Tuesday’s session. Many companies in the FTSE 100 operate internationally and will benefit from a weaker pound.
04/10/2016
