Pound fell to a 31-year low against the dollar on Monday as a result of Britain’s decision to quit the European Union. Sterling fell past $1.32 to $1.3192, its lowest since mid-1985, taking losses to 11.8 percent since last Thursday’s vote.
British Finance Minister George Osborne’s assurances to markets about the economy being in good shape and that the government and Bank of England had further actions available to them if needed have failed to give the currency any life.
A slide in banking shares along with a lack of clarity on the new British PM, a likely fresh move for Scottish secession and the response of the EU have all combined to make matters worse for the British currency.
(With Inputs from Reuters.)
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