The pound has fallen by 0.78% following the resignation of foreign secretary Boris Johnson.

At 2:40pm on Monday, as rumours of Mr Johnson’s started circulating, sterling was trading at $1.3347. By 3.30pm, it had fallen by 0.78% to $1.3243.

Against the Euro, the pound slumped 0.56% to €1.1271 in the same period of time.

The resignation of Johnson, a leading Brexiteer, came after the resignation of Brexit secretary David Davis, who said he was no longer the person to lead the UK’s negotiations over its future relationship with the European Union.

Both resignations follow a cabinet meeting on Friday, after which prime minister Theresa May announced that ministers had “agreed” a long-awaited Brexit plan.

The drop in the value of sterling is an indication that the departures of Johnson and Davis make the prospect of a “no deal” Brexit more likely.

Sterling also slumped in February 2016 when Johnson officially announced that he would campaign for Brexit in the referendum.