The pound rose following the Supreme Court’s ruling that the government must seek parliament’s approval before triggering Article 50, but slumped again after it was announced the devolved assemblies will not be allowed to veto leaving the European Union.
The pound had a rocky start to the day on Tuesday as its value continues to fluctuate as a result of the Supreme Court’s ruling which saw the 11 justices vote eight to three in favour of upholding the High Court’s decision.
The landmark ruling follows a legal challenge by the Government after a High Court ruling in November found the Prime Minister did not have the authority to trigger Article 50 of the Lisbon Treaty without consulting MPs and peers.
By upholding the High Court judgement, parliament will now have the right to debate and vote on invoking Article 50.
Despite initially rising in value, the Supreme Court’s announcement that devolved parliaments will not have a say led to Sterling falling in value again.
The pound fell 0.5% to 1.2474 pounds after the ruling, Bloomberg reports.
Before the ruling the pound to euro exchange rate was at a high of 1.165.
Sterling rose to 1.1674 following the Supreme Court’s initial announcement, before falling to 1.1584 when devolved assemblies were told they would not be getting a veto.
The pound to euro exchange rate is currently 1.1607.
Its pre-referendum figure was 1.3072.
The pound to dollar exchange rate has fallen by 0.4% to 1.2491, down from a day high at 1.2548.