Sterling held close to 30-month lows against the dollar on Friday as a shrinking of Britain’s ruling Conversative Party’s majority in parliament added to worries over domestic politics three months before Britain is due to exit the European Union.
Britain’s pro-European Union Liberal Democrats won a parliamentary seat from the governing Conservatives, a blow to Prime Minister Boris Johnson in his first electoral test since taking office.
The loss reduces Johnson’s working majority in parliament to just one ahead of an expected showdown with lawmakers over his plan to take Britain out of the European Union on Oct. 31 without an exit agreement if necessary.
In early deals in London, sterling was flat against the dollar at $1.2128, not far from a 30-month low of $1.2080 hit on Thursday.
It was lower against a broadly stronger euro, down 0.1% at 91.50 pence.
Source : Reuters