UK Pound Strengthening Against US Dollar as 'Hard Brexit' Concerns Weaken

The UK currency on Wednesday is strengthening against the US dollar as concerns about the consequences of the so-called hard Brexit that would leave the country without access to the EU single market are decreasing, according to market statistics.

MOSCOW (Sputnik) — On Tuesday, The Times newspaper reported, citing leaked government papers that the United Kingdom might lose up to 66 billion pounds ($80.9 billion at the current exchange rates) in case of "hard Brexit" that would deprive the country of the access to the EU internal market. The concerns about such a scenario had a negative impact on the pound's exchange rate.

As of 06:07 GMT, the GBP/USD exchange rate stood at 1,228 up from 1,212, which was the last rate registered on Tuesday.

At the same time the GBP/EUR exchange rate is estimated at 1,104 compared to 1,105 at the last Tuesday rate.

On June 23, the nationwide referendum on EU membership was held in the United Kingdom, in which 51.9 percent of voters said the country should leave the bloc. UK Prime Minister Theresa May promised to start the procedure of leaving the European Union by the end of March 2017.