British pound fell to a three-year low against the euro, as the British prime minister Theresa May said that Britain will run until the end of March Bregzit.At the same time, Britain’s finance minister warned of “turbulence”.
The pound fell to 87.46 pence against the euro, the lowest level since August 2013, after the British government announced additional details on how the release of the UK from the European Union, AFP reports.At the start of this week’s trading in London, the pound also weakened against the dollar at 1.2853 pounds to the dollar, which is 0.5 percent lower compared to Friday.
British Finance Minister Philip Hammond said that citizens can expect “some turbulence in the negotiation process,” adding that the confidence of consumers and businesses could move like a roller-coaster.
“The fall in the exchange rate of the pound this morning reflect the concerns of investors,” said market economist Filip Kepital, Ana Taker.
The British economy is in a period after Bregzita achieved better results than analysts’ expectations, a key indicator of the strength of manufacturing sector purchasing managers index (PMI), which calculates the London-based company Markit, rose in September to 55.4 points from 53.4 points in August, what is its highest level since mid-2014, according to information published today.
Better than expected data in the British manufacturing sector contributed to the jump of the main index of the London Stock Exchange, despite the collapse of the pound.
The London FTSE 100 index in the afternoon rose 1.1 percent to 6,974.61 points, while shares in other European markets mostly fell, AFP reports.
Paris KAK 40 index fell 0.1 percent to 4443.44 points, the Euro Stoxx 50 was down 0.2 percent at 2,995.10 points, while the Frankfurt Stock Exchange is closed today for a public holiday.
In the US, shares were trading at the beginning were in the red, on the eve of this week’s publication of a report on employment in the United States and the annual meeting of the International Monetary Fund and the World Bank.
About 35 minutes from the start of trading, the Dow Jones Industrial Average fell 0.4 percent to 18,236.42 points, broader S & P 500 by 0.4 percent to 2,159.32 points, while the tech-rich Nasdaq Composite by 0.4 percent to 5,291 points.
In foreign exchange, the euro rose to 87.42 pence from 86.64 pence at the end of last week, the pound fell to 1.2849 dollars from 1.2974 dollars, while the dollar rose to 101.60 yen from 101.37 yen .
In Asia, Tokyo’s index rose 0.9 per cent of Hong Kong by 1.2 percent, while the Shanghai stock market was closed for a public holiday.The pound is now at one point fell to 87.42 pence per euro, the lowest level since August 2013, after the British prime minister Theresa May, presented additional details about the process of leaving Britain from the EU.
The pound was also “slipped” on a three-month low against the dollar of 1.2846 dollars to a later recovered goods.
However, the manufacturing sector in the UK has achieved better than expected results, as the purchasing managers index (PMI) in September rose to its highest level since mid-2014, according to information published today.