NEWS

Pound To Euro Exchange Rate Falls Today Following Theresa May's Brexit Comments

Lowest level for two months.

09/01/2017 09:06 | Updated 09 January 2017

Sterling has weakened against the Euro and US dollar after Prime Minister Theresa May failed to dispel speculation Britain is heading for a so-called “hard Brexit”.

The pound fell to its lowest level against the dollar for two months on Monday, down by one cent at $1.22 in overnight trading.

Bloomberg
Sterling has weakened against the Euro and US dollar (pictured) in the wake of comments over Brexit by Theresa May

It was also down by one cent against the Euro at €1.16.

May’s comments during an interview on Sunday with Sky News signalled the UK would leave the EU to “set our own rules” on immigration.

John Stillwell/PA Wire
May signalled during an interview on Sunday that the UK would leave the EU to "set our own rules" on immigration

During her first interview of the new year, the prime minister appeared confident that the UK could enjoy tariff free access to the Single Market as well as regaining control of immigration policy as part of a Brexit deal with the EU.

However, European leaders, including Germany’s Angela Merkel, have repeatedly insisted that membership of the Single Market means accepting freedom of movement rules.

Markus Schreiber/AP
Germany’s Angela Merkel has said membership of the Single Market means accepting freedom of movement rules

The divergence of view on the issue has increased the likelihood of a “hard Brexit” whereby the UK leaves the Single Market entirely.

“Anybody who looks at this question of free movement and trade as a sort of zero sum game is approaching it in the wrong way,” May told presenter Sophy Ridge.

John Stillwell/PA Wire
The prime minister appeared confident on Sunday that the UK could enjoy tariff free access to the Single Market

”I’m ambitious for what we can get for the UK in terms of our relationship with the European Union because I also think that’s going to be good for the European Union,” she added.

The fluctuations in the value of the pound since the June 2016 EU referendum has made converting Sterling into foreign currency a more expensive task than it was this time last year. 

Sterling is down against the dollar by about 19 percent since the Brexit vote.

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