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STERLING STABILISES

Pound sterling recovers against euro and dollar exchange rate as Theresa May secures DUP deal

The pound regained some ground against the euro and the dollar this morning

THE pound has edged higher against the dollar and the euro as Theresa May secured a deal with the Democratic Unionist Party (DUP).

Sterling rose against the dollar and the euro this morning as rumours of the announcement surfaced.

 The pound wobbled this morning against the dollar as Theresa May worked to secure a deal with the DUP
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The pound wobbled this morning against the dollar as Theresa May worked to secure a deal with the DUPCredit: Investing.com
 Prime Minister Theresa May stands with First Secretary of State Damian Green (right), DUP leader Arlene Foster (second left), DUP Deputy Leader Nigel Dodds (left), as DUP MP Sir Jeffrey Donaldson (third right) shakes hands with  Gavin Williamson, inside 10 Downing Street, London
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Prime Minister Theresa May stands with First Secretary of State Damian Green (right), DUP leader Arlene Foster (second left), DUP Deputy Leader Nigel Dodds (left), as DUP MP Sir Jeffrey Donaldson (third right) shakes hands with  Gavin Williamson, inside 10 Downing Street, LondonCredit: PA:Press Association

The pound fell this morning against the euro to £1.1366 at 10.45am, before recovering to £1.1393.

Against the dollar it fell from £1.2775 to £1.2708 at the same time, before recovering to £1.2736 after the deal was announced.

This morning analysts at LMAX flagged political uncertainty over Britain's government and Brexit as reasons for being cautious on the pound.

"With the government still scrambling and the Brexit negotiations hanging in the balance, there is plenty of good reason to not be getting overly bullish the pound just yet," they wrote.

The pound has suffered against all major currencies since the referendum to leave the EU in June last year.

The FTSE 100 index was up 50.29 points at 7474.42 at 11.45am on the back of the DUP agreement and the news that Italy has reached a deal to bail out two banks.

The Tories today agreed to ditch manifesto policies such as the end of a triple pension lock and plans to means-test the winter fuel allowance.

They also agreed to plough an additional £1 billion into Northern Ireland’s economy for healthcare, education and infrastructure.

Theresa May and Arlene Foster met with their deputies and senior MPs at Number 10 to seal the deal around the Cabinet table.


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