impact: Analysts said sterling's slide which makes imported goods and foreign travel more expensive but UK exports cheaper would push up inflation and lead to a renewed squeeze on living standards at a time when support for the government's handling of Brexit has fallen sharply, according to The Guardian. Holidaymakers have already seen an impact from the weaker pound. Sterling was down heavily against all major currencies as investors sought to insure themselves against the growing possibility that talks between London and Brussels break down over the coming months. The walk-up rate at Forexchange bureaux de change in Cardiff airport on Wednesday had dropped to just 0.90 to 1 200 bought just 177. Although the government has insisted that it still expects negotiations with the EU over the next few months to prove successful, currency traders have been prepared for a deal not to emerge and are now hedging against the possibility of the hardest possible Brexit. Speculation against the pound has intensified in the past week as markets have digested warnings from Mark Carney, the governor of the Bank of England, and Liam Fox, the international trade secretary, about the possibility of a chaotic exit from the EU for Britain next March.
(news.financializer.com). As
reported in the news.
Tagged under impact, exports topics.