The pound falls below $1.30 after Carney warns of 'uncomfortably high' no deal Brexit risk
- The pound dropped below 1.30 against the dollar on Friday morning.
- The fall came after Bank of England Governor Mark Carney said there was an "uncomfortably high" chance that Britain will leave the EU without a deal.
- The Bank of England ran an economic simulation of what might happen after a no deal Brexit. It suggested the UK would fall into a recession and interest rates and unemployment would soar.
- You can track the pound's movements live at Markets Insider.
LONDON - The pound fell below $1.30 against the dollar on Friday morning after Bank of England Governor Mark Carney said there was an "uncomfortably high" chance that Britain will leave the EU without a deal.
"The possibility of a no deal at the moment is uncomfortably high. It is highly undesirable, parties should do all things to avoid it," Carney said during an interview on BBC Radio 4's Today Programme.
Carney said the Bank of England recently ran an economic simulation of what might happen after a no deal Brexit. The results suggested the UK would fall into a recession, with interest rates and unemployment soaring.
The pound dropped significantly against both the dollar and the euro in response. Just after 8.40 a.m. BST (3.40 a.m. ET), the pound was trading at $1.2993, a fall of close to 0.2% on the day.