DHAKA: The pound is higher in early Asian trading, regaining some of the ground lost from a sharp drop late on Tuesday.

The currency was trading at $1.2259, up 0.8% from its fall the previous day.

On Tuesday, it had fallen more than 2%, dropping below $1.21, while against the euro it fell below €1.10.

The pound has now fallen about 18% against the dollar since the referendum, to levels not seen since 1985.

“Unfortunately this volatility in the pound is unlikely to end until there is greater clarity around Brexit,” said market analyst Angus Nicholson of IG in Melbourne, the BBC publishes this report on Wednesday (October 12).

He added that the rise in Asian trading may be driven by Prime Minister Theresa May making a late amendment to the terms of a debate on Wednesday, seen by traders as effectively giving Parliament a vote on the terms of Brexit.

Neil Wilson from ETX Capital said the mood around the pound had been extremely negative in recent days and that it was “now trading like an emerging market currency”.

He also said comments by a senior Bank of England official had not helped.

Michael Saunders, a member of the Bank’s interest rate-setting committee, said earlier that the pound could still “fall further”, but that the recent sharp drop was not an immediate cause for concern.

BDST: 1640 HRS, OCT 12, 2016
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*** Pound below one euro at many airports