Post-Brexit Panic Over? Dollar Edges Down, Pound Steadies

The Pound rose as high as 96.705 on Monday, after it plumbed 31-year lows following the results of the Brexit vote.

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Business
2 min read
British Pound bank note. This image is used for representational purposes. (Photo: istockPhoto)

The dollar took a breather in Asia on Thursday, but remained near a three-and-a-half month high against a basket of currencies hit in the wake of Britain’s stunning vote to exit from the European Union, while the recently battered pound crawled higher.

The dollar index, which tracks the greenback against a basket of six major rivals, edged down 0.1 percent to 95.642 , on track for a monthly loss of 0.2 percent.

It rose as high as 96.705 on Monday, when the pound plumbed 31-year lows after the results of the UK vote on Friday sent markets reeling.

The British pound was up 0.3 percent at $1.3456, well above Monday’s nadir of $1.3122, but still poised to lose more than 7 percent for the month.

The euro was down 0.2 percent at 82.67 pence, edging away from Monday’s high of 83.80, which was its loftiest peak in over two years.

“The odds may be against them but investors are hoping that the worst is over for currencies and equities and the gaps on Friday will be filled,” Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, wrote in a note to clients.

Asia Stocks Rise as Post-Brexit Rebound Continues, Yen Stays Flat

Asia stocks rose across the board on Thursday, tracking an overnight rally on Wall Street, while the safe-haven Japanese yen stopped rising as global markets regained a semblance of calm after last week’s Brexit shock.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3 percent, pulling further away from a one-month low on Friday when it plunged more than 3 percent in reaction to Britain’s decision to leave the European Union. The index was on track to end the April-June quarter down about 1 percent.

Japan’s Nikkei climbed 0.8 percent.

(With agency inputs)

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