The UK’s currency has remained in negative territory after Theresa May’s revised Brexit plan was defeated in Parliament.
Sterling was down 1 per cent against the euro at £0.8631 after MPs voted against the Prime Minister’s deal in a night of drama on Tuesday.
It comes after the pound plummeted when Attorney General earlier admitted the UK could be locked forever into EU rules through the backstop.
Stirling had surged when Mrs May, following last-ditch negotiations in Strasbourg on Monday evening, claimed to have won legally binding assurances from the bloc.
It climbed as high as $1.3288 last night but was down 0.52 per cent at $1.3071 shortly after Mrs May conceded a free vote to block a no-deal outcome when her EU divorce plans were rejected by 391 votes to 242.
The crushing 149-vote defeat immediately raised questions over the Prime Minister’s future amid growing talk of a General Election.
With her Government in full-scale crisis, Mrs May confirmed a vote will be held on Wednesday which could stop the UK crashing out of the EU.
She also said MPs will be able to vote on Thursday to delay Brexit beyond March 29.
However, she tersely told MPs that the votes this week would not resolve the Brexit dilemmas.
