Sterling is dropping again on Monday.
The pound is down by around 0.3% against the dollar at around 11.30 a.m. GMT (7.30 a.m. ET), dropping close to $1.2150.
Here’s the chart:
The fall comes amid suggestions that the Governor of the Bank of England Mark Carney is preparing to announce that he will serve out his full eight-year term at the BoE, despite pressure to step down from angry Brexiteers who accuse the governor of “talking down” the British economy and becoming too involved in politics. The Financial Times reported on Sunday evening that friends of Carney say he is “leaning strongly towards staying in his post” until 2021.
Should Carney stay it would likely give a boost to sterling, given that he is widely regarded as a serious, credible, calm hand at the tiller of British monetary policy. He has been referred to as “the only adult in the room” when it comes to the government’s economic talks.
Sterling has dropped a little over 6% against the dollar during October, making it the second worst month for the currency since the Brexit vote. Sterling fell 8.09% during June, the month in which Britain voted to leave the EU.
Sterling’s fall in October has been largely driven by political uncertainty about what Brexit will actually look like, following the first suggestions that we are heading for a hard Brexit — leaving the EU without any formal trade deal with the bloc.
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