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Evening Standard
Evening Standard
National
James Morris

Pound hits new two-year low amid no-deal Brexit fears - as millions of Brits prepare for summer holidays

The Pound hit a two-year new low today amid continuing fears over a no-deal Brexit.

Sterling was down to below 1.09 Euros at one stage on Tuesday morning.

Meanwhile, the Pound also fell to 1.21 US Dollars, the lowest since March 2017.

The slump came as millions of holidaymakers across the nation prepared to set off for their summer breaks.

Boris Johnson's government has ramped up no-deal preparations (Jeff Mitchell/Getty Images)

The Independent reported £1 equated to 0.90 Euros at Gatwick Airport on Monday night.

Sterling had already lost 1.8 per cent this week as investors scrambled to factor in the possibility a last-minute agreement to avert no-deal may not happen under new Prime Minister Boris Johnson.

The government has ramped up no-deal preparations in recent days, with just 93 days remaining until the EU's October 31 deadline.

Ipek Ozkardeskaya, senior market analyst at London Capital Group, said of the slump: “The Pound is being dropped like a hot potato, as the likelihood of a no-deal Brexit becomes increasingly plausible.

"To many, it seems better to jump ship now, as things are about to get uglier as we approach the October 31 deadline."

Financial services company ING also advised in a note to clients: "We see more GBP weakness to come.

"The current sterling meltdown is in line with our view that GBP risks are heavily skewed to the downside given the Brexit uncertainty and rising odds of an early election."

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