Pound to Euro exchange rate: Sterling rallies as PM seeks further Brexit extension

The pound has rallied after Theresa May’s announcement that she will seek a further Brexit extension.

The Prime Minister said on Tuesday that she would ask the European Union for a further delay beyond April 12. Mrs May said she wanted time to sit down with Labour leader Jeremy Corbyn in a bid to break the Brexit impasse.

The pound immediately rallied against the dollar as much as 0.3 percent, to above $1.31.

It also strengthened against the Euro to 85.43 pence.

Theresa May gives her Brexit statement inside 10, Downing Street (Jack Taylor)

The FTSE 100 had earlier racked up its highest points tally of the year as the pound came under selling pressure amid renewed Brexit fears.

Jeremy Corbyn will sit down with Theresa May over Brexit deadlock

Mrs May chaired a marathon seven-hour Cabinet meeting before declaring “I'm taking action to break the logjam”.

Labour leader Mr Corbyn said he would be "very happy" to meet Mrs May.

However, he threatened to call a vote of no confidence in the government if it is unable to command a majority in support of an agreement.