The pound plunged to a one-week low against the dollar after reports that the government is set to suspend parliament to block opposition to a no-deal Brexit.
Sterling started its rapid decline on Wednesday around 8:30am, reaching $1.2169 just over an hour later. That was its weakest level since last Wednesday when it closed as $1.2130. The pound later recovered slightly to trade at $1.2198.
Against the euro, the pound also dropped, having hit a one-month high on Tuesday. It last traded at 90.93 pence.
Reports earlier on Wednesday said the government will ask the Queen to suspend parliament for at least a month from mid-September, giving MPs opposed to a no-deal Brexit only two weeks to stop such an outcome on 31 October.
The news sparked a furious reaction from a number of MPs, with several accusing Boris Johnson of acting like a “tin-pot dictator”.
A letter from Mr Johnson, posted on Twitter by The Guardian’s chief political correspondent Jessica Elgot at 10:33am, confirmed the prorogation of parliament.
