Tuesday 26 February 2019 11:15 am | Updated: Monday 03 June 2019 1:50 am

Sterling rallies as Theresa May prepares to rule out no-deal Brexit

The Prime Minister is reportedly set to rule out a no-deal Brexit in order to fend off a mass cabinet revolt against her that could see 15 ministers resign, it is reported.

Sterling rose to a four-week high against the dollar of $1.319, and a 21-month high of €1.162 against the euro as markets reacted to developments potentially making a no-deal scenario less likely.

The pound's rise sent the internationally-exposed FTSE 100 down 1.1 per cent this morning.

Three ministers have threatened to resign ahead of a crucial cabinet meeting today unless Theresa May takes no-deal Brexit off the table, according to the Daily Mail, with reports suggesting she is prepared to do so.

May will propose to cabinet ministers that Brexit is delayed beyond 29 March in today's crunch meeting, the Sun reported.

A Downing Street spokesman declined to comment on the reports, said Reuters.

It comes after Labour said it would support a second referendum and reports that the Prime Minister could delay Brexit.

Labour’s shadow Brexit secretary Sir Keir Starmer said the vote should be between a “credible” Leave option and Remain – and should not include no-deal.

Industry and energy minister Richard Harrington, digital minister Margot James and business, energy and industrial strategy minister Claire Perry threatened a revolt, in a letter to the Daily Mail.

Pressure mounted on the Prime Minister to delay Brexit yesterday as business secretary Greg Clark, work and pensions secretary Amber Rudd and justice secretary David Gauke all called for the UK’s departure from the EU to be postponed if a withdrawal agreement cannot be signed off in the coming week.

Labour leader Jeremy Corbyn told his MPs the party would either put forward or back a parliamentary plan to secure another public vote in order to stop a “damaging Tory Brexit”.