The pound has plummeted to a 31-year-low against the US dollar amid fears of a so-called hard Brexit.
Sterling fell 0.62% to $1.2764, almost 15 per cent below where it traded on the day of the referendum, June 23, when the markets were gripped by uncertainty.
It comes after Theresa May announced she would trigger Article 50 and begin the process for leaving the EU “no later than the end of March”.
This means the UK will be out of the EU by the summer of 2019.
In her speech at the Conservative Party conference, the Prime Minister also criticised the idea of a ‘soft Brexit’.
She said the UK would not make concessions over immigration or court powers in order to stay in the European single market.
She added: “We are not leaving the European Union only to give up control of immigration again. And we are not leaving only to return to the jurisdiction of the European Court of Justice.”
But yesterday Sterling had already hit a three-year low against the euro, skidding to €1.147.
The currency has struggled ever since the country voted to leave the EU in June, as investors worry about the effects it will have the economy.
