Pound falls on report Britain's Queen could be asked to suspend parliament

[LONDON] Sterling fell on Wednesday after a BBC journalist said that Britain's Queen Elizabeth could be asked as early as Wednesday to agree to suspend parliament.

The pound, already trading lower on the day, extended its drop to hit US$1.2220, down 0.5 per cent on the day.

Against the euro the British currency also weakened 0.6 per cent to 90.81 pence.

"Hearing that the Queen could be asked to agree to prorogue parliament as early as today," Nick Robinson, the former BBC political editor, tweeted. "She's in Balmoral. Would be done by Order in Council. Only one source. Not confirmed. Watch this space."

Sterling had rallied in recent days on hopes that Britain's opposition parties can stop a no-deal Brexit.

British Prime Minister Boris Johnson has said the UK is leaving the European Union with or without a deal on Oct 31, and media have previously reported that he wants to suspend parliament to help force through an exit.

REUTERS