Pound Hits New Lows amid Post-Referendum Turmoil

While the Brexit vote had an impact on all currencies, the Great Britain pound (unsurprisingly) has borne the brunt of Britain’s decision to part with the European Union. The currency touched a new 31-year minimum versus the US dollar and also dropped to new lows versus many other currencies.
It is important to note that the results of the referendum are not binding. Moreover, there is a move to redo the voting again. Yet all this did little to alleviate concerns of investors.
And there are plenty of reasons to be concerned. Among them is the potential break out of Scotland and Northern Ireland (not surprising considering they have stayed in the United Kingdom primarily to remain in the EU). Additionally, Standard & Poor’s lowered Britain’s sovereign credit rating with a negative outlook.
GBP/USD dipped 1.3424 to 1.3224 as of 23:55 GMT today, and its daily low of 1.3119 was the lowest since 1985. EUR/GBP climbed from 0.8199 to 0.8324. GBP/JPY went down from 136.30 to 134.58.

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