Sterling hits new two-year low on no-deal Brexit fears – UKMALAYALEE

Sterling hits new two-year low on no-deal Brexit fears

Tuesday 30 July 2019 6:22 AM UTC

LONDON July 30: Sterling has fallen to a new two-year low this morning against the dollar after ministers in Prime Minister Boris Johnson’s new government said yesterday that they were now assuming a no-deal Brexit.

The pound had fallen 0.4 per cent against the dollar to buy $1.233 by 10am UK time. It had also fallen 0.4 per cent versus the euro to buy €1.108, making Britons’ holidays more expensive.

Investors are selling the pound after the chances of a no-deal Brexit – which most analysts think would be economically damaging – rose dramatically after Johnson was chosen by Conservative party members as the new PM on Tuesday.

Johnson then carried out a bloody reshuffle in which he put prominent Brexiteers in some of the most important jobs in government.

The new ministers briefed the media over the weekend that planning for no deal was the government’s number one priority.