Sterling gave up most of its earlier gains and traded broadly flat on the day after the Bank of England warned that Britain risks a bigger hit to its economy than the financial crisis if it leaves the European Union in a “disorderly” manner.
The economy could contract by as much as 8 percent in a year and the pound could lose a quarter of its value, the Bank of England said.
The pound was trading broadly flat at $1.2744 per dollar after having hit a session high of $1.2806 earlier. Against the euro, the pound was broadly flat at 88.52 pence.
Barely four months before Britain is due to leave the EU, Prime Minister Theresa May is struggling to garner support from parliament for the agreement she sealed with EU leaders on Sunday.
Source : Reuters