A truck passes security at Larne Port in Co Antrim, Northern Ireland on December 6, 2020.
PAUL FAITH | AFP | Getty Images
LONDON – Sterling escalated its losses against the US dollar on Monday as fears mounting fears that UK and EU negotiators may fail to reach an agreement before a transition period ends later this month.
The UK currency was trading at $ 1.3230 during morning trading, down 1.5% for the session.
Talks between the UK and the European Union are due to resume later in the day. British Prime Minister Boris Johnson is expected to speak to the President of the European Commission, Ursula von der Leyen.
Both sides are trying to iron out the terms of a possible post-Brexit trade deal. The UK and the EU have cited progress in a number of areas, but differences persist in terms of fishing rights, the so-called “level playing field” and how future disputes can be resolved.
The level playing field relates to standards that the UK must adhere to in order to export to the block.
The UK left the European Union in January but agreed to comply with EU trade rules by the end of the year so that both sides can sign a new trade deal. The negotiations dragged on for months, however, and as the year ended there were growing concerns that the talks could collapse without a deal.
In this scenario, exporters on both sides would face higher costs and obstacles in their daily business.
– CNBC’s Silvia Amaro contributed to this report.