AIRLINK 189.36 Increased By ▲ 1.33 (0.71%)
BOP 11.10 Decreased By ▼ -0.76 (-6.41%)
CNERGY 7.28 Decreased By ▼ -0.26 (-3.45%)
FCCL 36.65 Decreased By ▼ -1.14 (-3.02%)
FFL 14.95 Decreased By ▼ -0.29 (-1.9%)
FLYNG 26.19 Increased By ▲ 0.66 (2.59%)
HUBC 130.89 Increased By ▲ 0.74 (0.57%)
HUMNL 13.47 Decreased By ▼ -0.14 (-1.03%)
KEL 4.28 Decreased By ▼ -0.07 (-1.61%)
KOSM 6.08 Decreased By ▼ -0.09 (-1.46%)
MLCF 45.94 Increased By ▲ 0.26 (0.57%)
OGDC 201.86 Decreased By ▼ -4.57 (-2.21%)
PACE 6.12 Decreased By ▼ -0.26 (-4.08%)
PAEL 38.36 Decreased By ▼ -1.95 (-4.84%)
PIAHCLA 16.73 Decreased By ▼ -0.22 (-1.3%)
PIBTL 7.94 Decreased By ▼ -0.09 (-1.12%)
POWER 9.86 Decreased By ▼ -0.17 (-1.69%)
PPL 173.46 Decreased By ▼ -5.38 (-3.01%)
PRL 34.73 Decreased By ▼ -1.63 (-4.48%)
PTC 23.95 Decreased By ▼ -0.44 (-1.8%)
SEARL 101.74 Decreased By ▼ -1.42 (-1.38%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 32.70 Decreased By ▼ -3.54 (-9.77%)
SYM 17.93 Decreased By ▼ -0.30 (-1.65%)
TELE 8.14 Decreased By ▼ -0.24 (-2.86%)
TPLP 12.02 Decreased By ▼ -0.14 (-1.15%)
TRG 67.40 Increased By ▲ 0.07 (0.1%)
WAVESAPP 11.80 Decreased By ▼ -0.21 (-1.75%)
WTL 1.52 Decreased By ▼ -0.05 (-3.18%)
YOUW 3.90 Increased By ▲ 0.01 (0.26%)
BR100 11,819 Decreased By -87.9 (-0.74%)
BR30 35,000 Decreased By -554.1 (-1.56%)
KSE100 112,085 Decreased By -478.8 (-0.43%)
KSE30 34,946 Decreased By -148 (-0.42%)
Markets

Sterling weakens as political limbo seen deepening

The ruling reduced the likelihood of Britain leaving the European Union without a deal by Oct. 31. The longer-
Published September 25, 2019
  • The ruling reduced the likelihood of Britain leaving the European Union without a deal by Oct. 31.
  • The longer-term risk-return outlook for UK equities looks uncertain and we still advise being nimble on sterling.

LONDON: The pound fell half a percent on Wednesday as investors braced for more British political uncertainty in the coming months after the United Kingdom's Supreme Court ruled that Prime Minister Boris Johnson had unlawfully suspended parliament.

While the ruling reduced the likelihood of Britain leaving the European Union without a deal by Oct. 31, it also opened the doors to various options including a new election, a delay in Brexit, or even a second referendum.

"Predicting the ultimate outcome of Brexit remains difficult," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

"As a result, the longer-term risk-return outlook for UK equities looks uncertain and we still advise being nimble on sterling."

Against the dollar, the pound fell half a percent to $1.2434. Versus the euro, the British currency weakened 0.2pc to 88.41 pence.

The Supreme Court's decision called Johnson's suspension of parliament unlawful and said lawmakers should return to sitting.

After the ruling, the British currency strengthened as much as 0.6pc to $1.2504 and not far from a 2-1/2 month high of $1.2582.

But the currency fell back overnight as investors grew wary about the short term outlook.

"The main risk now is that we are in a never-ending limbo," said Kit Juckes, an FX strategist at Societe Generale in London.

Comments

Comments are closed.