GBP/INR continues to decline on pessimism over Brexit talks. Currently, one British pound buys 96.595 Indian rupees, down 0.10% as of 7:00 AM UTC. This is the fifth straight bearish session, with the pair falling to the lowest level since July 28.
The pound has lost ground as the UK has given more hints that it would be ready for a no-deal Brexit. Earlier this week, the UK moved the deadline to October 15, when the final round of trade talks is concluding. The government led by Prime Minister Boris Johnson has pondered changes in the existing withdrawal agreement bill to override parts of it. On the other side, European leaders warned that there would be no deal if the UK decided to change the current bill.
The Financial Times first reported about Britain’s plans to override specific parts of the deal, particularly those related to the hard border between Ireland and Britain’s Northern Ireland. The EU said that if the report is accurate and the UK would go for the changes in the bill, there would be no deal at all.
Irish Prime Minister Micheal Martin said on Tuesday that the trade talks would be considered “null and void” if the withdrawal agreement was not implemented in full. He said:
“The withdrawal agreement is an international treaty and we expect the UK government to implement and to adhere to what was agreed. We trust them to do so or they would render the talks process null and void.”
UK Ready for No-Deal
Nevetheless, it seems that Johnson has accepted the idea of a no-deal Brexit. Still, many businesses are still not ready for that, as they would lose the closest ties with the European markets.
Earlier today, UK housing minister said that the EU should demonstrate more flexibility to secure a Canadian-style free trade deal. Otherwhise, Britain would be happy to leave without a deal.
Housing Secretary Robert Jenrick told media:
“We want to leave with a Canada-style free trade arrangement – that’s always been our preference – and we think that’s still possible.”
