Pound plunges to four-week low against the Euro as speculation mounts that Theresa May is facing a rebellion by her own MPs
Sterling tumbled after reports from British newspapers showed a number of MPs and former ministers were saying she should quit as PM
THE POUND has fallen to a four-week low against the Euro after speculation mounted that Theresa May might be forced out of No10 by her own MPs.
Sterling tumbled after reports from British newspapers showed a number of MPs and former ministers were saying she should quit as PM.
It was down by 0.5 per cent at 1.12 against the Euro, and also took a fall against the US dollar - down to 1.319.
Yields on 10-year government bonds also dropped.
The fall also came as it was revealed UK car sales had slid by nine per cent this year.
And it was also reported today that the Chancellor is set to face a budget black hole as watchdogs issued a dire warning over public finances.
The pound has fallen in recent days as markets grew fearful about Mrs May's future - despite a 4 per cent rise in August overall.
The pound has seen a decline of almost 9 per cent against the euro since April this year and 12 per cent since the Brexit vote.
Mrs May's conference speech yesterday announcing plans to build more new council houses and a cap on energy bills was overshadowed by a huge bout of bad luck.
She was handed a P45 by a prankster, suffered a coughing fit while delivering the speech - and bits of the set fell down around her.
Today she's facing calls to resign and up to 30 MPs are considering launching a leadership challenge after the party was significantly weakened after June's election.
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- Don’t buy cash at the airport – you’ll always be able to beat the rate with a bit of forward planning
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
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- Don’t pay for travel money with a credit card – it’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees. WeSwap, FairFX and Caxton FX are all worth checking out.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees
Financial analyst at Spreadex, Connor Campbell, said today there was no one defining factor, but a "web of news highlighting the impact of Brexit uncertainty for the former and suggesting a hawkish Fed for the latter."
The US dollar received a boost today after factor goods orders rose more than expected last month.
"If sterling really has been sold today for fears of a rebellion, that may be short-lived," said Nomura International strategist Jordan Rochester.
"Tory rebels will likely remember the long game, which is to place all the blame from Brexit negotiation woes on Theresa and move on when 2019 presents itself."
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