On December 6, 2020, Northern Ireland passes through a lorry security at Lar R Lane, a port in Antarctica.
Paul Faith | AFP | Getty Images
London – U.S. Sterling extended losses against the dollar on Monday, amid fears the UK and EU negotiators could fail to reach a deal before the end of the transition period later this month.
The UK currency traded up 1.3230 dollars during the morning trade, down 1.5% for the session.
Talks between the UK and the European Union are set to resume the next day, with British Prime Minister Boris Johnson expected to hold talks with European Commission President Ursula von der Leyen.
Both sides are trying to hurt the terms of a possible post-Brexit trade deal. The UK and EU have cited progress in some areas, but disagree on phishing rights, the so-called “level playing field” and how future disputes can be resolved.
Level playing field refers to standards that must be complied with in the UK to be exported.
The UK left the EU in January, but agreed to continue to comply with EU trade rules until the end of the year so that both parties could sign a new trade agreement. However, negotiations have dragged on for months, and by the end of the year, there are growing concerns that a deal could be struck without negotiations.
In this scenario, exporters on both sides have to face costs and constraints in their daily business.
– CNBC’s Sylvia Amaro contributed to this report.
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