"It is something that can happen over time," said Lukman Otunuga, research analyst at currency exchange FXTM. "It's going to be a long and painful mess until October 31[ads1]."
Experts predict that Johnson's election as leader of the Conservative Party and the nearing October deadline will continue to push sterling against $ 1.20, and possibly lower.
"The risk for the UK leaving without an appointment goes up during the day," said John Wraith, chief of UK's investment strategy at UBS. "This is the … magnetization sterling lower, just because time is shortened."