Author: Jeevan A. Robinson (MNI Alive Media) | Date: 16 January 2017
The UK's pound sterling has dropped to its lowest level in three months. The pound fell to US$1.20 following reports that Britain was set to quit the EU single market due to BREXIT.
BREXIT has had an ongoing impact on the UK's currency since the vote result was announced, and the ensuing political battle that Prime Minister Theresa May faces over her BREXIT plans.
Against the US Dollar sterling has fallen as low as 20% since the BREXIT vote.
Against the EURO sterling fell to a two month low dropping to about €1.13.
These movements on sterling come, as analysts have been monitoring reports that suggest PM Theresa May may be signally pulling out of the EU single market and customs union.
According to a BBC report, Downing Street has described this as "speculation".
There are factors also outside of the UK that are impacting the pound sterling, with US President-elect Donald Trump stating that the fall in the pound was "great" for British business.
The U.S President-elect also gave suggestions in his interview with the UK's Times Newspaper that his Scottish golf course has been doing well due to the fall in sterling. Mr Trump stated; "business is unbelievable in a lot of parts in the UK".
A weaker pound is in some ways good for UK businesses as it makes them more competitive outside of the UK. But for travellers it is a pain, as it means less foreign currency to be exchanged for the pound.
Some analysts have been stating to the media that the currency movement was "clearly another political drop for sterling."
According to a BBC report; Laura Lambie, Senior Investment Director at Investec Wealth and Investment, stated that Bank of America was forecasting the pound could fall to as low as $1.15.