(Investing.com) The pound slumped to its weakest level in 20 months against the dollar on Monday as British Prime Minister Theresa May postponed a parliamentary vote on her Brexit deal, rekindling doubts about the United Kingdom'sdeparture from the European Union in March.
Safe-haven bids stoked a comeback for the greenback which suffered its steepest weekly drop versus a basket of currencies in three months last week. The dollar’s snapback was limited as traders reduced their expectations that the Federal Reserve might pause its interest rate hikes sooner than previously thought.
“Pound slowly fell in the past two years, fluctuating based on erroneous hopes of resolution, but it’s clear that leaving the single market and its benefits, in any way, is not a prosperous route,” said Juan Perez, senior currency trader at Monex Inc in Washington.