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The pound plunged to a one-week low against the dollar after reports that the government is set to suspend parliament to block opposition to a no-deal Brexit .
Sterling started its rapid decline on Wednesday around 8:30am, reaching $1.2169 just over an hour later. That was its weakest level since last Wednesday when it closed as $1.2130. The pound later recovered slightly to trade at $1.2198.
Against the euro, the pound also dropped, having hit a one-month high on Tuesday. It last traded at 90.93 pence.
Boris Johnson's cabinet: Who's in and who's outShow all 40 1 /40Boris Johnson's cabinet: Who's in and who's out Boris Johnson's cabinet: Who's in and who's out In: Jacob Rees-Mogg Jacob Rees Mogg appointed Leader of the Commons
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Boris Johnson's cabinet: Who's in and who's out In: Esther McVey Esther McVey appointed housing secretary
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Boris Johnson's cabinet: Who's in and who's out In: Jo Johnson Jo Johnson appointed new business and energy secretary
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Boris Johnson's cabinet: Who's in and who's out In: Brandon Lewis Brandon Lewis appointed immigration secretary
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Boris Johnson's cabinet: Who's in and who's out In: James Cleverly James Cleverly appointed Conservative Party chairman
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Boris Johnson's cabinet: Who's in and who's out In: Baroness Evans Baroness Evans remains Leader of Lords
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Boris Johnson's cabinet: Who's in and who's out In: Julian Smith Julian Smith appointed Northern Irish secretary
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Boris Johnson's cabinet: Who's in and who's out In: Alister Jack Alister jack appointed Scottish secretary
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Boris Johnson's cabinet: Who's in and who's out In: Alun Cairns Alun Cairns remains Welsh secretary
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Boris Johnson's cabinet: Who's in and who's out In: Grant Shapps Grant Shapps appointed transport secretary
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Boris Johnson's cabinet: Who's in and who's out In: Alok Sharma Alok Sharma appointed international development secretary
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Boris Johnson's cabinet: Who's in and who's out In: Robert Buckland Robert Buckland appointed justice secretary
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Boris Johnson's cabinet: Who's in and who's out In: Amber Rudd Amber Rudd remains work and pensions secretary
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Boris Johnson's cabinet: Who's in and who's out In: Robert Jenrick Robert Jenrick appointed housing and communities secretary
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Boris Johnson's cabinet: Who's in and who's out In: Andrea Leadsom Andrea Leadsom appointed business secretary
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Boris Johnson's cabinet: Who's in and who's out In: Nicky Morgan Nicky Morgan appointed culture secretary
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Boris Johnson's cabinet: Who's in and who's out In: Gavin Williamson Gavin Williamson appointed education secretary
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Boris Johnson's cabinet: Who's in and who's out In: Theresa Villiers Theresa Villiers appointed environment secretary
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Boris Johnson's cabinet: Who's in and who's out In: Liz Truss Liz Truss is appointed international trade secretary
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Boris Johnson's cabinet: Who's in and who's out In: Ben Wallace Ben Wallace appointed defence secretary
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Boris Johnson's cabinet: Who's in and who's out In: Stephen Barclay Stephen Barclay remains EU secretary
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Boris Johnson's cabinet: Who's in and who's out In: Dominic Raab Dominic Raab appointed foreign secretary
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Boris Johnson's cabinet: Who's in and who's out In: Priti Patel Priti Patel appointed home secretary
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Boris Johnson's cabinet: Who's in and who's out In: Michael Gove Michael Gove given Chandellor of the Duchy of Lancaster
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Boris Johnson's cabinet: Who's in and who's out In: Sajid Javid Sajid Javid is appointed Chancellor of the Exchequer
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Boris Johnson's cabinet: Who's in and who's out Out: Jeremy Hunt Jeremy Hunt sacked as foreign secretary
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Boris Johnson's cabinet: Who's in and who's out In: Matt Hancock Matt Hancock remains health secretary
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Boris Johnson's cabinet: Who's in and who's out Out: Chris Grayling Chris Grayling resigned as transport secretary
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Boris Johnson's cabinet: Who's in and who's out Out: Jeremy Wright Jeremy Wright sacked as culture secretary
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Boris Johnson's cabinet: Who's in and who's out Out: Karen Bradley Karen Bradley sacked as Northern Ireland secretary
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Boris Johnson's cabinet: Who's in and who's out Out: James Brokenshire James Brokenshire sacked as housing and communities secretary
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Boris Johnson's cabinet: Who's in and who's out Out: Penny Mordaunt Penny Mourdaunt sacked as defence secretary
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Boris Johnson's cabinet: Who's in and who's out Out: Liam Fox Liam Fox sacked as international trade secretary
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Boris Johnson's cabinet: Who's in and who's out Out: Greg Clarke Greg Clarke sacked as business secretary
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Boris Johnson's cabinet: Who's in and who's out Out: David Mundell David Mundell sacked as Scottish secretary
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Boris Johnson's cabinet: Who's in and who's out Out: Damien Hinds Damien Hinds sacked as education secretary
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Boris Johnson's cabinet: Who's in and who's out Out: David Gauke David Gauke resigned as justice secretary
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Boris Johnson's cabinet: Who's in and who's out Out: Rory Stewart Rory Stewart resigned as international development secretary
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Boris Johnson's cabinet: Who's in and who's out Out: David Lidlington David Lidlington resigned as deputy Prime Minister
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Boris Johnson's cabinet: Who's in and who's out Out: Philip Hammond Philip Hammond resigned as Chancellor of the Exchequer
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Reports earlier on Wednesday said the government will ask the Queen to suspend parliament for at least a month from mid-September, giving MPs opposed to a no-deal Brexit only two weeks to stop such an outcome on 31 October. The plan to prorogue parliament was confirmed when a letter from Mr Johnson to MPs was released at about 10.30am.
The news sparked a furious reaction from a number of MPs, with several accusing Boris Johnson of acting like a “tin-pot dictator”.
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