Sterling sunk against the dollar again on Monday to its biggest loss in nearly six years, as fears heighten that Britain may vote to leave the EU in June’s referendum.
The Pound dropped 2.1 percent at its lowest point this morning to $1.41020, the largest one-day fall since March 2009. The figure comes as two senior Conservative politicians, London mayor Boris Johnson and Michael Gove, came out in support of a ‘Brexit’. Before this, the Exit campaign lacked the credibility of senior ruling figures – causing volatility in the Pound to shoot up as investors consider the possibility that Britain may be on its own from next year.
Ratings agency Moody’s said that it would consider shifting the outlook on Britain’s credit rating to negative after David Cameron announced that the date of the referendum would be the 23rd June. Until then, the uncertainty is likely to continue, ensuring that the exchange rate for the Pound is likely to remain volatile.
22/02/2016
