The Pound sterling has weakened in the currency market after the speculation of the general election in UK this October. The political uncertainty over Brexit which is scheduled to happen on 31st October has been the major reason for Pound going down in the currency market lately.
The pound has gone down more than 1 cent to $1.2050. On the other hand, it also fell below 1.10 Euro mark. In June 2016, the pound was trading in the currency market at about $1.50 against the dollar. This was the situation before the EU referendum.
The Prime Minister of the United Kingdom, Mr. Boris Johnson has already stated that the UK is ready to leave the European Union without a deal. Under Prime Minister Johnson, the government has become more adamant on a no-deal Brexit. However, the member of the parliament is still considering to push the scheduled Brexit date by three months. The scheduled Brexit date is 31 October.
The currency market is very sensitive to political uncertainty. As a result, it is obvious for pound to weaken in the currency market.