London, Oct 12 (IANS) The British pound showed some signs of recovery on Wednesday, rising more than 1 per cent against the US dollar and the euro.
The tentative rise came following a steep fall in the value of the pound sterling as world markets continued to react to the financial uncertainty of Brexit, EFE news reported.
On Wednesday morning, however, the pound rose some 1.24 per cent against the US dollar, sitting at around $1.227, and gained 1.18 per cent against the euro, rising to 1.100 euros.
Since the British electorate opted to leave the European Union (EU) in the June 23 referendum, the pound has slumped 18 per cent against the US dollar.
Experts believed that the latest depreciation in the pound was triggered by concerns on the world market that the UK would opt for a ‘hard’ Brexit, meaning it would choose full control of its borders over access to the common European market.
This option may include the introduction of high tariffs on the UK’s future trading with EU member nations.
The British government indicated that it would enact Article 50 of the Lisbon Treaty, which triggers a two-year secession negotiation process with the bloc, at the end of March 2017.