Sterling drops around 1 percent in reaction to PM Brexit comment

LONDON, Rabi’II 11, 1438, January 09, 2017, SPA — Talk of Britain dramatically reworking trade ties with the European Union after Brexit sent the pound tumbling to two-month lows on Monday, as signals the United States could raise interest rates three times this year lifted the dollar, Reuters reported.
The pound slid around 1 percent against both the dollar and the euro in early trading after weekend comments from British Prime Minister Theresa May that she was not interested in keeping “bits of membership” of the European Union.
Sterling fell 0.9 percent to as low as $1.2164, its weakest against the dollar since the end of October. It fell 1.1 percent against the euro too, hitting 86.65 pence per euro, the lowest since mid-November.
The dollar, meanwhile, crept ahead after signs of wage pressure in the December U.S. jobs report on Friday proved enough to lift key 10-year Treasury yields from 2.33 percent to 2.42 percent after a sizable fall earlier in the week.
The euro edged up 0.2 percent to $1.0550, as the steepest monthly rise in German exports in four-and-half years helped the bolster the shared currency which had ricocheted between $1.0339 and $1.0621 last week.
–SPA
13:14 LOCAL TIME 10:14 GMT