Pound falls amid ‘hard Brexit’ talk

The value of the pound has fallen to a 31-year low against the dollar but the FTSE 100 rose above 7,000 for the first time today.

The pound has fallen by 1.6% in two days to $1.2757, its lowest point since 1985, but the FTSE 100 rose by 1.7% to 7,101.69 on Tuesday.

The FTSE 100 has risen in part because a number of FTSE companies make the bulk of their sales in dollars.

On Sunday Prime Minister Theresa May indicated that the UK will trigger Article 50 by the end of March 2017 and there are reports suggesting she will opt for a so-called ‘hard Brexit’ – which could mean giving up full access to the single market.

May has said: “We are not leaving the European Union only to give up control of immigration again.

“And we are not leaving only to return to the jurisdiction of the European Court of Justice.

“I know some people ask about the 'trade-off' between controlling immigration and trading with Europe. But that is the wrong way of looking at things.”

And speaking to the BBC, May admitted leaving the EU won’t be plain sailing.

She added: "Of course they know it is not going to be plain sailing and there will be bumps in the road and they want certainty as soon as possible about the future holds but the attitude I am hearing is... 'let's make sure we come together and grasp the opportunities that are available'."