UPDATE 1-Pound drops as fears of no-deal Brexit develop

(Provides quotes, particulars, graphic)

LONDON, Aug 28 (Reuters) – Sterling dived on Wednesday as issues rose that the UK could also be headed for a disruptive no-deal Brexit after Prime Minister Boris Johnson moved to limit parliamentary time earlier than Oct. 31.

Johnson mentioned on Wednesday he would schedule a Queen’s Speech for Oct. 14 with a purpose to launch new laws. He denied he was searching for to stop parliament from obstructing his Brexit plans.

The transfer limits the quantity of parliamentary time accessible to lawmakers who need to forestall him taking the nation out of the EU with out an exit deal.

The pound, already buying and selling decrease on the day, prolonged its drop to hit $1.2156, a six-day low, and was final down 0.7% on the day.

Towards the euro the British foreign money additionally weakened to 91.265 pence, its lowest in practically per week, buying and selling final down by 0.7% at 90.89 pence.

“For the pound to get well the autumn this morning, anti-no deal MPs must get their acts collectively within the first weeks of September,” Jordan Rochester, a strategist at Nomura mentioned, elevating the chances of a no deal Brexit to 44% vs 40% earlier.

The most recent transfer from Johnson comes a day after lawmakers who’re against a no-deal Brexit met to debate methods they might use parliamentary process to power Johnson to hunt a delay to Brexit.

Sterling had rallied in current days on hopes that Britain’s opposition events can cease a no-deal Brexit.

On Tuesday, it hit a one-month excessive towards the greenback and the euro.

Johnson has mentioned the UK is leaving the European Union with or with no deal on Oct. 31, and media have beforehand reported that he desires to droop parliament to assist power via an exit.

(Reporting by Tommy Reggiori Wilkes, Saikat Chatterjee and Olga Cotaga; Graphic by Sujata Rao; Enhancing by Janet Lawrence)

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