Pound rebounds as Johnson loses majority in parliament

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Pound rebounds as Johnson loses majority in parliament
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LONDON: The British pound hit multi-year lows against the dollar on Tuesday (Sep 3) amid fears of a no-deal Brexit but rebounded after Prime ...

LONDON: The British pound hit multi-year lows against the dollar on Tuesday amid fears of a no-deal Brexit but rebounded afterahead of a crucial Brexit vote.

But then a Conservative lawmaker joined the opposition ahead of a showdown with rebel MPs over Brexit that could lead to a snap election within weeks."Though there is no doubt plenty of pain on the horizon, sterling managed to shake off the excesses of its Tuesday's slide as the session went on," said Connor Campbell at Spreadex.The UK leader insists that Britain will leave the EU with or without a deal on Oct 31.

While the pound's weakness makes imports into Britain more expensive, for example oil which is traded in dollars, it cheapens exports. "It seems there is no good near-term outcome. We either have an increased risk of no-deal, the possibility of a Corbyn government or more uncertainty," Craig Erlam, senior market analyst at Oanda trading group, told AFP on Tuesday.

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