THE pound dropped below $1.20 for the first time in 32 months ahead of a chaotic week for the UK Government.

Sterling fell to $1.1972 this morning in the run up to a Westminster show down between Prime Minister Boris Johnson and Tory rebels trying to prevent the UK leaving the EU without a deal. 

This is expected to be a dramatic week for the Commons. Last week Johnson revealed he would suspend parliament for five weeks, limiting the amount of time available for legislation to block a No-Deal Brexit to be passed. 

READ MORE: Boris Johnson to trigger snap General Election if rebels block Brexit plan

As the Commons returns from summer recess today but will be prorogued next week, the next few days are key for opposition and Tory rebel MPs to stop No Deal. 

A leaked list showed there are 22 rebel Tory MPs, many of them former Cabinet ministers, who have said they will back legislation to stop the UK leaving the EU without a deal on October 31.

READ MORE: Pound in 'freefall' as plans to suspend parliament are revealed

In a speech outside Downing Street last night Johnson urged those rebels to support his government amid speculation that he will call a General Election if they successfully pass the No-Deal prevention bill in the Commons. He said he and the British public do not want an election.

Valentin Marinov, foreign exchange analyst at Credit Agricole, said: “The latest pound weakness may reflect the fact that recent polls are suggesting that the pro-Brexit Tory party, Brexit Party and the DUP could come close to winning a majority and thus be able to deliver Brexit with or without deal."