In a piece published by Handelsblatt, the newspaper reported that the EU's offer is linked to the UK fulfilling all of its obligations as a member state but surrendering its voting rights. Last year’s referendum saw most British voters opt to leave the political union with Prime Minister Theresa May triggering Article 50 in March which officially began exit negotiations.
Earlier on Thursday, the Pound tumbled to as low as $1.3121 after EU’s chief Brexit negotiator, Michel Barnier, remarked that talks around the UK divorce payment had hit an impasse, increasing the likelihood of a messy departure. GBP rallied the most in four years in September after the Bank of England signalled it might be ready to hike interest rates.
Since then, the currency has pared almost half of those gains amid concern that Britain’s Brexit talks are making little progress.