Mubasher: Sterling pound (GBP) plunged against the US dollar below the $1.20 level its weakest in three years, as investors rushed to dump their UK assets, after Prime Minister Boris Johnson implicitly threatened to hold election, Reuters reported.

By 10:59 am GMT, the GBP/USD pair dropped by $1.2030, having earlier sunk to as low as $1.1959, losing 1% on the session.

The sterling lost 20% of its value since the UK voted to leave the European Union (EU) in 2016.

Except for a “flash crash” in October 2016, when the sterling dived to as low as $1.15, such levels were not regularly seen since 1985.

Investors fear that the UK would either leave the EU on 31 October without a transition deal or face parliamentary election that would bring about further unpredictability amid an already struggling economy.

The UK parliament was preparing for a vote that would allow members to control the parliamentary agenda on Wednesday, a first step of a plan to prevent Prime Minister Boris Johnson from seeking a no-deal Brexit.

The move came as an attempt to force through a legislation which prompt Johnson to pursue a three-month delay to the UK’s departure.

However, Johnson saud that he would hold a vote on Wednesday to approve an early election, probably on 14 October, if the government was defeated.

“The pound is being sold all over the place, because the political risk has forced us to recognize that a no-deal Brexit is possible,” Tokyo-based IG Securities senior foreign exchange strategist Junichi Ishikawa was quoted by Reuters.