Office workers walk down Threadneedle Street, home of the Bank of England, in London, Britain, Aug. 29, 2019. The British pound declined against the U.S. dollar and the euro on Wednesday in reaction to Prime Minister Boris Johnson's plan to suspend Parliament to reduce the MPs' chances to pass laws to block a no-deal Brexit. (Photo by Stephen Chung/Xinhua)
LONDON, Aug. 28 (Xinhua) -- The British pound declined against the U.S. dollar and the euro on Wednesday in reaction to Prime Minister Boris Johnson's plan to suspend Parliament to reduce the MPs' chances to pass laws to block a no-deal Brexit.
The Queen gave consent to Johnson's request to suspend the British Parliament, which means the House of Commons will sit only for a few days after it returns next Tuesday from its summer recess. Parliament will then resume with a State Opening by the British monarch on Oct. 14, just over two weeks before Britain's planned departure from the European Union (EU).
The British pound was trading at 1.2212 and 1.1026 against the U.S. dollar and the euro by Wednesday evening, down by 0.63 and 0.49 percent, respectively. The currency has been subject to Johnson's tough stance that Brexit would happen on Oct. 31, whether with or without a deal.
Benefiting from a weaker pound, the benchmark FTSE 100 Index, comprised of multinationals, rose by 0.35 percent, or 25.13 points, to close at 7,114.71 points. The FTSE 250, with a more domestic focus, lost 0.69 percent, or 132.89 points, to close at 19202.99 points.
David Cheetham, an analyst at currency trader XTB Online Trading, was quoted by the BBC as saying that the Parliament suspension "seems like a pre-emptive strike from (Johnson) against those seeking to block a no-deal Brexit."
With the prospect of a no-deal Brexit increasing, the pound will be likely to remain volatile, analysts have predicted.
The currency was trading at almost 1.50 against the U.S. dollar before the Brexit referendum in 2016.
