Pound Crashes After European Countries Shut Borders Against UK Traffic

The pound plummeted against the dollar and the euro on Monday after the UK yet again failed to reach a Brexit trade deal with the European Union (EU).

It was also knocked by a wave of European countries closing their borders to Britain as the country enforced tougher lockdown restrictions to fight a new variant of coronavirus.

Sterling, which last week hit highs not seen since mid-2018, fell 2% to $1.3259 and 1.6% to €1.0864 as another missed deadline spooked traders. It was also sent lower as the dollar strengthened on the back of a $900bn (£678bn) plan to buoy the US economy.

Shares in London also fell sharply after several EU countries closed their borders to the UK over a new variant of coronavirus.

The FTSE 100 share index fell about 1.8%, while the main markets in Germany and France were more than 2% lower.

Sterling fell about 1.4% against the euro and dropped 2% against the dollar.

Restrictions on travel hit airline stocks, with British Airways’ owner IAG and EasyJet tumbling 9%.