Pounds falls to lowest level in 31 years

Photo: www.napaonline.eu

Britain’s pound dipped below $1.27 for the first time since June 1985, the outcome of trading showed on Wednesday.

Financial analysts said in London that fears of a ‘hard’ Brexit could also push the currency to a five-year trough against a broadly stronger euro.

Sterling hit a 31-year low of $1.2686 dollars after opening before recovering to $1.2720, roughly flat on the day.

It fell as much as 0.4 per cent to 88.31 pence per euro before also clawing back some ground against the common currency.

“Sterling has finally and belatedly responded to the heightened and prolonged Brexit uncertainty, notwithstanding a resilient UK economy and prospects of significant UK fiscal stimulus.

“The outlook remains negative, but it is risky to jump on the selling bandwagon,” Greg Gibbs, director of independent research house Amplifying Global FX Capital, said.

Britain’s financial industry could lose up to 38 billion pounds ($48.3 billion) in revenue in a ‘hard’ Brexit that would leave it with restricted access to the European Union’s single market, according to a report on Tuesday commissioned by consultancy firm Oliver Wyman.

“UK PMI data is unlikely to be a game changer,” analysts from French bank Credit Agricole said in a morning note.


Support PREMIUM TIMES' journalism of integrity and credibility


Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.


NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required


Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: New Discovery! Click Here To See A Miracle Device That Can Cure DIABETES, BLOOD PRESSURE, STROKE, ARTHRITIS, PAINS, OBESITY And 50 Other CHRONIC DISEASES Without Drugs Or Herbs.. Click Here Now To See It

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.