Skip to content
Subscriber Only

Pound Could Plunge to Parity Against Dollar on a No-Deal Brexit

  • Sterling faces historic lows on Brexit risk: Morgan Stanley
  • Level echoes BOE worst-case scenario from November analysis
Video player cover image
Treat Pound Like an Emerging Market Currency: Royal London's Greetham
Updated on

The pound may fall to parity with the dollar on a no-deal Brexit, according to Morgan Stanley.

A drop to historic lows of $1.00-$1.10 would come under the market’s worst-case scenario of the U.K. leaving the European Union without a deal, a risk that the bank says is growing. The pound hit a two-year low below $1.24 Wednesday after Boris Johnson and Jeremy Hunt, the contenders battling to become Britain’s next prime minister, hardened their Brexit rhetoric.