– The British pound sank Monday on uncertainty surrounding Prime Minister Theresa May s future, but the London stock market was buoyed by the sliding currency, dealers said.
Sterling faced selling pressure on reports that dozens of MPs in the ruling Conservative Party were backing a move to oust May, whose leadership has been battered by a string of scandals and crises.
“The potential of a Tory vote of no confidence in Theresa May has pushed the pound lower this morning, helping raise the FTSE off its lows,” said IG analyst Joshua Mahony.
“With a slow start to the week expected amid a dearth of economic releases, the potential for yet another political upheaval in the UK has no doubt grabbed market attention.”
The Sunday Times reported that 40 Conservative lawmakers have agreed to sign a letter of no confidence in the prime minister, just eight short of the number needed to trigger a leadership contest.
In morning London deals, the pound fell sharply to $1.3074, while the European single currency advanced to 89.05 pence.
London s benchmark FTSE 100 index of blue-chip firms rose as the weaker pound lifted share prices of multinationals.
Other European stock markets dipped, after Asian indices endured a broadly negative session following a recent rally to multi-year highs.
Two British cabinet ministers have been forced to resign in recent weeks — one over sexual harassment and the other for a series of unauthorised meetings with Israeli officials — weakening May s leadership.
Questions over May s future come as a secret letter emerged from two cabinet ministers instructing her how to run Brexit.