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Will Brexit Pound Sterling? And how will it affect UAE?

Britain's pound is expected to trade in a narrow range until the final decision on Brexit is announced in October, but the currency will depreciate in coming months if Boris Johnson wins the elections to become the UK's prime minister, analysts and experts said.

Industry executives believe that the pound will not see a big spike in the second half of 2019 and may trade in the range of 1 to 4 per cent.

"We do not expect any significant spike in respect of pound in the next few months and believe that the range would be between 4.55 to 4.78 against the UAE dirham over the next six months," said Adeeb Ahamed, managing director of Lulu Financial Group.

He said the upcoming fifth and final round of voting for the next PM of UK will play a major role in drawing up the roadmap for the country. The UK foreign policy, implication of no-deal Brexit, the growing divide between the cities and rural areas will determine the fate of the British currency.

"As of now, the pound will would move sideways until the voting is over and a decision is taken in respect of Brexit," he said.

Jeremy Hunt and Johnson will battle it out to be the next leader of the Conservative Party and also replace Theresa May as prime minister.

With Johnson expected to become the next UK prime minister, Nigel Green, CEO of deVere Group, warned that Johnson will drive down the pound even further should he win the leadership contest.

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Title Annotation:United Arab Emirates
Publication:Pakistan & Gulf Economist
Geographic Code:4EUUK
Date:Jul 21, 2019
Words:303
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