Pound plunges as UK ministers quit over Brexit deal

The pound plunged against the dollar and euro yesterday after ministers, including Britain's Brexit secretary Dominic Raab, quit in protest against a draft deal to exit the EU.

The latest market gyrations came as the nation's business sector gave a lukewarm verdict to the proposed agreement, and amid worries that British Prime Minister Theresa May could soon face a no-confidence vote.

At 1000 GMT, the pound was worth around $1.2784, compared with almost $1.30 late Wednesday. The euro meanwhile jumped to 88.26 pence, a gain of 1.3 percent.

London's FTSE 100 index of major companies meanwhile dipped 0.1 percent to 7,026.17 points.

Losses were capped by the weaker pound, which boosts London-listed multinationals whose earnings abroad are converted back into sterling.

"There's been a sharp move lower in the pound ... after Brexit minister Raab announced his resignation," said XTB analyst David Cheetham.

May had been preparing to sell her Brexit deal to parliament, boosted by news that Europe is preparing a rapid summit to sign off on the agreement.

However, her efforts unravelled spectacularly as Raab resigned along with work and pensions secretary Esther McVey and junior Northern Ireland minister Shailesh Vara.

Raab's resignation "is a major blow for May ... with her position now growing increasingly tenuous", Cheetham warned.

"It now seems probable that a vote of no confidence will be tabled, with some reports stating that the requisite 48 letters will be sent by lunchtime."

Sterling was also hit by news that official retail sales slid by 0.5 percent in October compared with September.

The Society of Motor Manufacturers and Traders (SMMT), which represents Britain's key automotive industry and which has been at the forefront of business concerns about the consequences of Brexit, said Thursday that the deal was a "positive step".

Pound plunges as UK ministers quit over Brexit deal

The pound plunged against the dollar and euro yesterday after ministers, including Britains Brexit secretary Dominic Raab, quit in protest against a draft deal to exit the EU. The latest market gyrations came as the nations business sector gave a lukewarm verdict to the proposed agreement, and amid worries that British Prime Minister Theresa May could soon face a no-confidence vote. At 1000 GMT, the pound was worth around $1.2784, compared with almost $1.30 late Wednesday. The euro meanwhile jumped to 88.26 pence, a gain of 1.3 percent. Londons FTSE 100 index of major companies meanwhile dipped 0.1 percent to 7,026.17 points. Losses were capped by the weaker pound, which boosts London-listed multinationals whose earnings abroad are converted back into sterling. Theres been a sharp move lower in the pound ... after Brexit minister Raab announced his resignation, said XTB analyst David Cheetham. May had been preparing to sell her Brexit deal to parliament, boosted by news that Europe is preparing a rapid summit to sign off on the agreement. However, her efforts unravelled spectacularly as Raab resigned along with work and pensions secretary Esther McVey and junior Northern Ireland minister Shailesh Vara. Raabs resignation is a major blow for May ... with her position now growing increasingly tenuous, Cheetham warned. It now seems probable that a vote of no confidence will be tabled, with some reports stating that the requisite 48 letters will be sent by lunchtime. Sterling was also hit by news that official retail sales slid by 0.5 percent in October compared with September. The Society of Motor Manufacturers and Traders (SMMT), which represents Britains key automotive industry and which has been at the forefront of business concerns about the consequences of Brexit, said Thursday that the deal was a positive step.