Pound falls after May says Brexit at ‘impasse’

LONDON (AP) — The pound has fallen further after British Prime Minister Theresa May took a tougher line in the Brexit talks.

The currency was down a sharp 1.5 percent at $1.3066 after May said Brexit negotiations are “at an impasse” after the European Union rejected her proposals for leaving the bloc.

The proposal was to keep the U.K. in the EU single market for goods, but not services, to ensure free trade with the bloc and an open border between the U.K.’s Northern Ireland and EU member Ireland.

EU officials dismissed the plan, saying Britain can’t “cherry-pick” elements of membership in the bloc.

The disagreement raises the risk of Britain leaving the EU without any deal on future trade relations after Brexit day on March 29, which would mean tariffs on exports and disruptions to commerce, travel and other activities.