Sterling’s losses deepen
On Tuesday, the British pound managed to extend its losses against the greenback, as Brexit fears persisted, while the Japanese yen lost ground against the US dollar.
On Monday, the British pound dropped to $1.2304, from $1.2348 late in New York. The sterling’s loss this month has reached 5%, following worries regarding a potential hit from tough Brexit or a clean break with the EU after Britain’s June vote to exit the block.
The United Kingdom faces tax profit losses of £66 billion annually if that tough Brexit turns to be a reality, in accordance with leaked government papers cited in media reports on Tuesday. The given loss would be due to the UK’s exit from the EU, reverting to World Trade Organization rules, that would result in a 9.5% sag in the British GDP.
The draft cabinet committee paper, seen by such newspapers as The Guardian, is built around on forecasts from a research into the effects of a tough exit from the EU.
In April, a report on the research was issued by George Osborne, who lost his post as Chancellor of the Exchequer on the eve of Brexit.