Pound could fall to parity with dollar on hard Brexit concerns

Fear of 'hardline' Boris Johnson and Jeremy Hunt could push sterling down to mid-80s levels, says Morgan Stanley

The pound's fall to a two-year low against the dollar could be the start of a no-deal Brexit inspired wave of selling that would push sterling towards a one-for-one exchange rate against the US currency, a leading investment bank has warned.

Morgan Stanley said the nervousness in financial markets over the hardline approach adopted by both Boris Johnson and Jeremy Hunt risked pushing the pound down from its current level of $1.24 to the lowest level since it almost reached parity in the mid-1980s.