Pound slides after surprise UK court ruling over Brexit

British currency falls against the dollar after the Supreme Court rules that the government has to seek parliamentary approval to trigger Brexit.

An English 10 pound note. The currency has fallen after the surprise Supreme Court decision on Brexit. Phil Noble / Reuters

The pound and gilts fell as investors bet a Supreme Court loss for the UK prime minister Theresa May will not derail the start of a process to exit the European Union.

The UK’s highest court ruled Mrs May needs to seek parliamentary approval to trigger Brexit, an expected decision that hands policymakers a chance to try to amend the government’s stance. The judges ruled unanimously that legislatures in Scotland and Northern Ireland do not get to vote on the Article 50 process, which could have delayed Mrs May’s end-March time frame.

Sterling extended losses to a low of US$1.243 after the announcement, and traded down 0.6 per cent at $1.246 by 10:54am in London. UK 10-year gilt yields rose three basis points to 1.39 percent. The pound was at $1.244 as of early afternoon UK time.

* Agencies