DHAKA: Sterling has fallen to a three-year low against the euro after UK Prime Minister Theresa May outlined the timetable for starting Brexit negotiations.

It also hit its lowest level against the dollar since the beginning of July.

On Sunday, the premier said she would trigger Article 50, the clause needed to start the process, by the end of March 2017.

That means the UK is likely to leave the EU by mid-2019, reports the BBC.

In early morning trade, the pound fell by about 1% against the euro to €1.1433, but it had recovered slightly by late afternoon.

However, the pound was down more than 1% against the dollar. At one point it touched $1.2818, its lowest rate since 6 July when it hit $1.2797.

May’s announcement had “unsurprisingly, been bad news for the pound”, said Connor Campbell, Spreadex financial analyst.

“Sterling has been spooked by May’s promise to trigger the dreaded Article 50 by the end of March 2017.”

However, the currency had been particularly unsettled by the prospect of the UK leaving the EU single market, he said.

BDST: 2153 HRS, OCT 03, 2016
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