LONDON – Sterling tumbled on Thursday after a series of resignations rocked Prime Minister Theresa May’s government and threw into doubt her long-awaited Brexit agreement just hours after it was unveiled.
The pound fell 1.5 percent versus the dollar and was headed for its biggest drop this year against the euro after Brexit minister Dominic Raab and three other ministers resigned in protest against her plan.
Traders fear May’s leadership is now in serious jeopardy.
“What concerns us is how many ministers seeing this news will be pondering if it is better to get their resignations in now rather than wait,” said Nomura strategist Jordan Rochester.
“If several ministers go this becomes more difficult for Theresa May to hold her position,” he added.