The pound slumped following reports U.K. Prime Minister Boris Johnson plans to change the law to guarantee the Brexit phase isn’t extended beyond the end of next year, increasing the threat of a no-deal divorce.
Sterling slid as much 0.7% to $1.3236 and weakened against all of its Group-of-10 peers in early Asian trading Tuesday. Johnson’s planned legislation will include legal text to prevent the government from delaying the day Britain stops being subject to EU laws, even if no new trade terms have been secured in time, an official said.
Sterling surged as much as 2.7% on Friday after the Conservative Party won an emphatic victory in the U.K. general election, fueling optimism of a speedy resolution to the Brexit deadlock. The pound was 0.4% weaker at $1.3277 as of 8:34 a.m. in Singapore.