Pound plunges as UK minister warns of Brexit 'rollercoaster'

The new premier, who took power in July after David Cameron quit following the Brexit vote, also indicated willingness to leave the single market in order to secure control over immigration from the EU.

Pound plunges as UK minister warns of Brexit 'rollercoaster'

World Bulletin / News Desk

The pound hit a three-year low against the euro Monday after Prime Minister Theresa May said Britain will trigger Brexit negotiations by the end of March and her finance minister warned of economic "turbulence".

Sterling dropped to 87.46 pence against the euro, the lowest level since August 2013, after May's government gave more details about how Britain will leave the European Union at the Conservative Party conference in Birmingham, central England. 

Speaking before his keynote address Monday, finance minister Philip Hammond warned Britain's economy faces "turbulence" as ministers hammer out Brexit, adding consumer and business confidence could go up and down like a "rollercoaster".

His comments came the day after May revealed Britain would start the two-year exit process by the end of March, putting it on track to leave by early 2019 and opening the door for painful negotiations with EU partners.

At the start of the week's trading in London, sterling also fell to $1.2853 against the dollar, a fall of around 0.5 percent since closing on Friday.

"Whilst markets welcome the update (from May), there is still a great degree of uncertainty surrounding what Brexit negotiations will involve," said Ana Thaker, a market economist at PhillipCapital UK.

"It is generally considered that the more May insists on immigration control, the more the EU is likely to close access to the single market," an analysis but Rabobank Financial Markets Research added.

"The drop in the value of the pound this morning reflects investors' concerns."

Güncelleme Tarihi: 03 Ekim 2016, 12:45