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Report: BoE leader says Brexit has pound looking like emerging-market currency

The British pound, buffeted by the uncertainty surrounding the U.K.'s departure from the European Union, has been trading like an emerging-market currency, Bank of England Governor Mark Carney said, according to Bloomberg News.

"Sterling volatility, as you would know, is at emerging-market levels and has decoupled from other advanced economy pairs for obvious reasons," Carney was quoted as saying during a Sept. 10 event in New York hosted by the Council on Foreign Relations.

Carney also said financial markets will "move substantially in one way or another," depending on the Brexit outcome.

Carney's comments came a day after a bill aimed at preventing the U.K. from crashing out of the EU on Oct. 31 without a Brexit deal became law, putting up a hurdle for Prime Minister Boris Johnson's Brexit strategy.

Johnson's recent defeats in the U.K. Parliament over Brexit have lifted the pound, which fell below $1.20 for the first time in nearly three years Sept. 3.

On monetary policy, Carney said he does not see negative interest rates as a tool in the U.K., Bloomberg News reported.

The BoE recently scaled back its worst-case scenario for a no-deal Brexit to a loss of output to the U.K. economy of 5.5% of GDP. Carney attributed the revision to "real progress on the ground" in terms of Brexit preparations.