Sterling dives as markets ramp up bets on no-deal Brexit

The pound was last down 0.3% at US$1.2467, not far from the 27-month low reached last week, having declined 1.8% against the dollar so far this month. Against the euro, it also fell to 89.98 pence.

LONDON: Sterling fell nearly half a percent with the outlook turning bleak as traders increased their bets on a no-deal Brexit before the result of the Conservative party’s leadership election.

The pound’s weakness was in sharp contrast to the general calm in the developed market currency space and signalled growing unease among investors over the likelihood of Eurosceptic former foreign minister Boris Johnson becoming the next prime minister.