Sterling Falls Sharply as Stock Markets React to Europe’s UK Travel Bans.
The pound fell sharply driven over worries of the travel bans this morning as European countries closed their borders to the UK following the discovery of a new strain of the coronavirus Sterling dipped by as much as two and a half cents against the US dollar to less than $1.33 on today, Dec, 21, and was also down by more than a cent against the euro to just above €1.09.
The UK currency had already been experiencing volatile trading recently with hopes of a Brexit deal driving it to the highest level since 2018 against the US dollar last week. Assets and currencies took the largest hits as the UK woke up to a raft of countries that had taken the decision to ban all UK flights.
Canada has suspended entry of all passenger flights from the UK for 72 hours, effective from midnight (05:00 GMT). Passengers who arrived in Canada from the UK on Sunday would be “subject to secondary screening and enhanced measures, including increased scrutiny of quarantine plans”, it said.
Other countries and territories to announce restrictions on UK travel include Hong Kong, Israel, Iran, Croatia, Argentina, Chile, Morocco and Kuwait. Meanwhile, Saudi Arabia has suspended all international flights for one week because of the pandemic.
A senior market analyst at Foreign exchange company, Oanda, said: “Brexit trade deal talks remain stalled over the weekend, with time running out to approve a deal through by both sides before 31 December. “Combined with European border closures and the UK health secretary using phrases such as ‘out of control’ to describe the new strain, sterling is, unsurprisingly, under pressure today.”
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