Pound temporarily stabilizes after biggest fall in two years

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Europe

The British pound temporarily stabilized on Friday after high volatility on Thursday, which marked the currency's the largest fall since the referendum in 2016.

On Friday evening, the pound was down 0.35 percent against the euro and up 0.39 against the US dollar following a day of no further minister resignations and the appointment of new Brexit Secretary and Work and Pensions Secretary.

The FTSE 100 decreased 0.34 percent to close at 7013.88 points on Friday. Shares in UK-focused stocks like banks and housebuilders continued to drop.

Melrose Industries, a London-based company that specializes in buying and improving underperforming businesses, saw its shares losing 6.05 percent. Royal Bank of Scotland Group and Royal Mail were also among the worst performers.

The pound declined more than 1.8 percent against both the US dollar and the euro on Thursday, after Brexit Secretary Dominic Raab, Work and Pensions Secretary Esther McVey and several other ministers stepped down in protest of the prime minister's draft Brexit agreement.

Prime Minister Theresa May said on Wednesday she had secured the backing of the cabinet for the withdraw deal. She now battles to see the deal through parliament which she claims to be "the best deal that can be negotiated."

On Friday, May appointed Stephen Barclay and Amber Rudd as the new Brexit Secretary and Work and Pensions Secretary respectively.

However, May faces pressure from Conservative MPs as some have submitted letters of no confidence to the 1922 Committee. If 48 letters were received, a vote of no confidence in the prime minister could be triggered.

Source(s): Xinhua News Agency