Sterling falls to fresh 2019 low as Boris Johnson gathers support
Sterling has fallen to a fresh 2019 low as Boris Johnson’s leadership bid goes from strength to strength – ramping up the chances of a no-deal Brexit.
The pound slid to $1.2514 overnight – its lowest level since 11 December last year – before recovering slightly.
Read more: Andrea Leadsom backs Boris Johnson in race to Number 10
It also bounced back from five-month lows against the euro after European Central Bank president Mario Draghi said the central bank was ready to provide more stimulus if inflation doesn’t pick up.
Draghi’s dovish speech sent the euro plunging 0.29 per cent to $1.1186, with the pound rising against the euro to €1.1204.
Johnson, a hardline Brexiter, was handed another leadership boost today as Andrea Leadsom offered her support after she was eliminated from the contest.
The former London mayor has been clear that under his leadership the UK would leave the EU on 31 October “with or without a deal.”
Read more: Boris Johnson ‘not aiming’ for no-deal Brexit but warns against further delay
Sterling traders, who fear a no-deal Brexit, have reacted to any news increasing Johnson’s chances of becoming the next Prime Minister, sending the currency down.
Bank of England governor Mark Carney has previously warned a no deal-Brexit could cause the pound to fall 25 per cent reaching parity with the US dollar.
Leadsom praised the contender earlier today.
She told LBC: “I think he is the best placed to get us out of the EU by the end of October.
“He is someone who can bring the country and the party back together and take us forward in a positive way.”
Johnson has vowed to pull the UK out of the EU by the 31 October deadline even if it results in a no-deal Brexit.
Tory MPs will vote today on the second round of the Tory leadership contest.