Britain's pound
tumbled as much as 2.5 percent on Friday, lifting the country's main
FTSE share index, following an election that denied any party a majority
in parliament and fomented political chaos just days before Brexit
talks begin.
With
no clear winner emerging from Thursday's election, Prime Minister
Theresa May signaled she would fight on and try to form a government,
despite having failed to win the stronger mandate she had sought to
conduct exit talks with the rest of the European Union.
The surprise result raised questions about how Britain will advance with its plan to leave the EU, and whether any party can form a stable government, It sent the pound to eight-week lows against the dollar and its lowest levels in seven months versus the euro. GBP=D3 EURGBP=D3
But having slid to as low as $1.2636 in early European trade, sterling was at $1.2740, apparently taking some support from news that Northern Ireland's Democratic Unionist Party will back May's Conservatives in forming a government.
That still left sterling down 1.7 percent against the dollar on the day and on track for its biggest one-day fall since last June, though that move was dwarfed by an almost 8 percent dive the day after last June's EU referendum.
But the earlier trough in sterling merely left the currency around where it had been trading before May called the election on April 18.
A hard Brexit is one on which Britain leaves the EU's single market and customs union, a matter of deep concern for many businesses.
The surprise result raised questions about how Britain will advance with its plan to leave the EU, and whether any party can form a stable government, It sent the pound to eight-week lows against the dollar and its lowest levels in seven months versus the euro. GBP=D3 EURGBP=D3
But having slid to as low as $1.2636 in early European trade, sterling was at $1.2740, apparently taking some support from news that Northern Ireland's Democratic Unionist Party will back May's Conservatives in forming a government.
That still left sterling down 1.7 percent against the dollar on the day and on track for its biggest one-day fall since last June, though that move was dwarfed by an almost 8 percent dive the day after last June's EU referendum.
But the earlier trough in sterling merely left the currency around where it had been trading before May called the election on April 18.
A hard Brexit is one on which Britain leaves the EU's single market and customs union, a matter of deep concern for many businesses.
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