Pound up from 20-month low after Brexit setback; dollar retreats

Tuesday,   11-Dec-2018   04:08 PM (IST)

The pound edged up from 20-month lows on Tuesday as investors tried to decide whether British Prime Minister Theresa May's postponement of a vote on her Brexit deal would lead Britain into a chaotic exit from the European Union.May called off a parliamentary vote on her Brexit agreement to seek more concessions. The move thrust Britain's exit from the European Union into turmoil and pushed the pound down.Possible outcomes now include a disorderly no-deal Brexit, another referendum on EU membership, or a last-minute renegotiation of May's deal with Brussels.After falling 1.6 percent against the dollar on Monday to as low as $1.2507 , sterling recovered somewhat, trading up 0.4 percent at $1.2621.EU leaders will discuss Brexit at a summit this week, but "will not renegotiate the deal," European Council President Donald Tusk said on Monday.Weakness in sterling helped nudge the euro up 0.2 percent to $1.1377.Concerns over violent protests in France against President Emmanuel Macron's economic reform have limited the euro's gains recently.Investors are focused on the European Central Bank's economic assessment of the euro zone, due on Thursday.