The pound fell from a two-week high ahead of Theresa May’s visit to Brussels on Wednesday.
The Prime Minister was headed to the Belgian capital in a bid to break the Brexit deadlock, and sterling had risen to £1.3076 earlier in the session amid optimism that Ms May could find a way to solve the Irish backstop issue.
However, the pound dropped against the dollar and the euro after three Tory MPs quit the party to join the newly formed Independent Group.
The currency was down 0.27 per cent against the dollar, at $1.3027, and fell 0.25 per cent against the euro to €1.1490.
“It’s not a big surprise the three resigned from the party so there’s no big market reaction,” said Mikael Olai Milhoj, an analyst at Danske Bank A/S.
“But it does make life harder for Theresa May, giving her an even smaller majority.”
1/12 The Independent Group
Details on the individual MPs are in the following photos
Reuters
2/12 Anna Soubry
The prominent anti-Brexit MP for Broxtowe resigned from the Conservative party on February 20
PA
3/12 Heidi Allen
Anti-Brexit MP for South Cambridgeshire resigned from the Conservative party on February 20
PA
4/12 Luciana Berger
MP for Liverpool Wavertree since 2010, resigned from the Labour Party over bullying and anti-semitism
PA
5/12 Chuka Umunna
MP for Streatham since 2010 and prominent People’s Vote supporter
PA
6/12 Sarah Wollaston
Anti-Brexit MP for Totnes resigned from the Conservative party on February 20
PA
7/12 Joan Ryan
MP for Enfield North resigned from the Labour party on February 19 citing its tolerance of a “culture of anti-Jewish racism”
PA
8/12 Ann Coffey
MP for Stockport since 1992
Chris McAndrew / UK Parliament
9/12 Gavin Shuker
MP for Luton South since 2010
Getty
10/12 Chris Leslie
MP for Nottingham East since 2010
PA
11/12 Mike Gapes
MP for Ilford South since 1992
PA
12/12 Angela Smith
MP for Penistone and Stocksbridge since 2010
1/12 The Independent Group
Details on the individual MPs are in the following photos
Reuters
2/12 Anna Soubry
The prominent anti-Brexit MP for Broxtowe resigned from the Conservative party on February 20
PA
3/12 Heidi Allen
Anti-Brexit MP for South Cambridgeshire resigned from the Conservative party on February 20
PA
4/12 Luciana Berger
MP for Liverpool Wavertree since 2010, resigned from the Labour Party over bullying and anti-semitism
PA
5/12 Chuka Umunna
MP for Streatham since 2010 and prominent People’s Vote supporter
PA
6/12 Sarah Wollaston
Anti-Brexit MP for Totnes resigned from the Conservative party on February 20
PA
7/12 Joan Ryan
MP for Enfield North resigned from the Labour party on February 19 citing its tolerance of a “culture of anti-Jewish racism”
PA
8/12 Ann Coffey
MP for Stockport since 1992
Chris McAndrew / UK Parliament
9/12 Gavin Shuker
MP for Luton South since 2010
Getty
10/12 Chris Leslie
MP for Nottingham East since 2010
PA
11/12 Mike Gapes
MP for Ilford South since 1992
PA
12/12 Angela Smith
MP for Penistone and Stocksbridge since 2010
Heidi Allen, Sarah Wollaston and Anna Soubry left the Conservative Party, having been heavily critical of the PM’s approach to Brexit and the growing influence of eurosceptics in the party.
The move means the Independent Group now has 11 members, as many as the Liberal Democrats, including the eight MPs who have walked out of Jeremy Corbyn’s party in recent days.
Additional reporting by newswires
We’ll tell you what’s true. You can form your own view.
At The Independent, no one tells us what to write. That’s why, in an era of political lies and Brexit bias, more readers are turning to an independent source. Subscribe from just 15p a day for extra exclusives, events and ebooks – all with no ads.
