The pound slumped to a new two-year low against the dollar after Boris Johnson announced the government was “turbo-charging” preparations for a no-deal Brexit on 31 October.

Sterling dropped to as low as $1.2243 on Monday after falling 1 per cent against the US currency. The pound was also down 1 per cent against the euro at €1.102.

The fall extended a slide that has seen the pound drop from as high as $1.33 in March, hitting British holidaymakers’ spending power as they jet off for summer breaks.

For those heading to countries in the eurozone, the eu pound will now buy 7 cents less than it did in May.

Connor Campbell, a financial analyst at SpreadEx said sterling was going through a “worst-case-scenario end to July” which had set up three months of intense Brexit anxiety.

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