Sterling gained 0.2 percent against the dollar and euro on Monday as Prime Minister Theresa May struck a deal to prop up her minority government, peeling away one layer of uncertainty for Britain as its negotiates its exit from the European Union. Kate King reports.
Even before the ink had dried on the billion dollar deal between the British conservatives and Northern Ireland's Democratic Unionist party sterling had began to inch up - gaining 0.2 percent against the euro. The agreement, they say, once again offering a 'stable' government. (SOUNDBITE) (English) LEADER OF THE DEMOCRATIC UNIONIST PARTY (DUP) ARLENE FOSTER, SAYING: "Today we have reached an outcome that is good for the United Kingdom, good for Northern Ireland and allows our nation to move forward to tackle the challenges ahead." It's been two weeks since Theresa May lost her majority in the snap election she called- weakening Britain's position as it entered talks on its split from the EU. The new deal - giving May a minority government - offering markets welcome clarity. Although the Prime Minister's personal future, still looks uncertain. (SOUNDBITE) (English) WORLD FIRST, CHIEF ECONOMIST, JEREMY COOK, SAYING: "It doesn't really give her a mandate to govern in the grand scheme of things. It means that every single vote be it on Brexit or be it on fishing or on fire safety on the Grenfell tower, whatever it may be it's going to be a nail biter because she has such a thin majority." The DUP says a large part of the one billion dollars will be spent on infrastructure, health and education over the next two years. In return its 10 lawmakers will now support May's Conservatives in key votes, including Brexit legislation. The deal though - angering Scotland and Wales who say they too need a vital boost in funding.