The pound has risen after MPs voted to reject Theresa May's Brexit deal by 230 votes. Sterling rose 0.05% to $1.287 after declines of more than 1% earlier in the day. The currency slumped 7% in 2018 reflecting uncertainty about the terms of the UK's exit from the European Union.
British Prime Minister Theresa May has struck a deal with the European Union that would give UK financial services companies continued access to European markets after Brexit, the Times reported on Thursday.
Uncertainty over Theresa May's future as prime minister helped send sterling down nearly 1% against the dollar on Thursday. The pound fell 0.9% against the greenback at $1.3127 and declined 0.45% against the euro to €1.1217. The fall reflected concern about the Conservative Party leadership following Mrs. May speech on Wednesday.
The number of visitors to the UK rose to 3.5 million in June, up 7% from the same month last year, according to official figures. The number of visitors from North America shot up by 34%, and visitors overall spent £2.2bn, a rise of 2%, the UK Office of National Statistics, ONS, said.
The governor of the Bank of England has warned that uncertainty over Brexit is already weighing on the economy. Mark Carney's comments came as the Bank voted to hold rates and cut growth forecasts. It edged this year's growth forecast down to 1.7% from its previous forecast of 1.9% made in May and also cut the forecast for 2018 from 1.7% to 1.6%.
The weakness of sterling was behind a surge in the number of tourists visiting the UK in the first three months of 2017, according to the Office for National Statistics (ONS). The number of holidaymakers coming to the UK rose by 21.1%, although the number of business visitors declined.
The Bank of England has recently introduced a new, more secure UK £5 banknote, and plans to introduce a new UK £1 coin that will replace the existing the existing coins.
The British Pound slumped lower on ongoing Brexit worries on Tuesday, while the US Dollar recouped some of its recent losses as investors wait for President-elect Donald Trump's first press conference Wednesday. While Trump's Twitter account has been active since he won the keys to the White House and given clues to his policies, Wednesday's press conference will give Trump the platform to explain his tax and spending plans.
Many travelers buying foreign currency at the UK's airports are now receiving less than one Euro to the pound, reports the BBC. The continued fall in sterling's value means that the average rate available at 17 airport bureaux de change is now just 99 euro cents to the pound. The worst rate is currently 88 Euro cents at Moneycorp at Southampton airport and the best is €1.06 from the Change Group at Glasgow Prestwick.
The British pound dropped to a two-month low and the yen rallied Monday as jittery investors shifted into safer assets on worries about Britain's possible exit from the European Union. The flight to lower-yielding investments came as Asian stock markets plunged, with dealers awaiting meetings this week of the US and Japanese central banks.