Investing.com - The British pound fell on Friday following a High Court ruling that a legal challenge to the prorogation of parliament had been rejected.
GBP/USD fell 0.3% to 1.2297 as of 09:27 GMT as it looked more likely that Boris Johnson's planned suspension of parliament would go ahead from Sept. 10 until Oct. 14.
The ruling will be appealed to the Supreme Court, which has already agreed to hear appeals on Sept. 17.
The case was brought to the High Court by anti-Brexit campaigner Gina Miller and given support by former Conservative Prime Minister John Major.
With the exception of a flash crash in October 2016, the pound fell to lows not seen since 1985 on Tuesday on fears that the UK would leave the European Union without a deal. At its lowest on Tuesday the pound fell to 1.1959.
Sterling bounced back on Wednesday evening after parliament passed a bill to prevent the UK crashing out of the EU without a deal. Hopes of a Brexit extension sent the pound to monthly highs on Thursday.
The bill passed by parliament compels the Prime Minister to request a Brexit extension if no deal is in place by exit day on Oct. 31. Johnson would be required to seek the extension during the Oct. 17 European Summit. The bill is currently being debated in the House of Lords.
It is expected that the bill will be passed in the Lords on Friday afternoon. Once passed it will be given royal assent on Monday, making it law.
PM Boris Johnson failed to secure enough backing for a general election on Wednesday evening.
Leader of the House of Commons Jacob Rees-Mogg suggested that there would be another call for an election on Monday.