Skip to content
Subscriber Only

Pound Tumbles in Delayed Reaction as May Gets Brexit Go-Ahead

  • News brings ‘a whole new catalog of uncertainty’: Rabobank
  • Sterling touches lowest level in eight weeks versus the dollar
Bloomberg business news

U.K. Prime Minister Theresa May Avoids Brexit Revolt

Updated on

The pound tumbled against all of its Group-of-10 peers, touching an eight-week low versus the dollar, after U.K. Prime Minister Theresa May was given the go-ahead to trigger Brexit.

Sterling had a delayed reaction to the news, which came out late Monday in London and gives May the chance to formally kick off negotiations with the European Union. Investors had been reluctant to sell the pound during Tokyo trading hours as markets were quiet before the Federal Reserve policy decision on Wednesday, according to Masashi Murata, a currency strategist at Brown Brothers Harriman. The selloff comes a day after Scottish First Minister Nicola Sturgeon signaled the start of a legal process for an independence referendum.