EU referendum: Pound sharply lower

London, June 24 (IANS) The pound has swung wildly as traders reacted to the latest results from Britain’s referendum on the European Union (EU) membership, BBC reported.

Before the results started to come in, the pound rose as high as $1.50, as traders bet on a ‘Remain’ victory.

But after strong ‘Leave’ votes in Sunderland and Newcastle declared early Friday, it tumbled to $1.43 and then took another dive at around 2 a.m. to $1.41.

Traders said they have never seen such dramatic moves since the financial crisis of 2008.

“These moves are concerning and bring back pretty painful memories of 2008,” said Jeremy Cook, chief economist at World First.

“The pound didn’t have this bad a day (against the USD) in the global financial crisis and the moves by the bookies to price Leave as the favourite is killing the pound. News from Wales is the most concerning at the moment alongside the London turnout dynamics,” he added.

Analysts warned that the moves have been amplified by thin trading.

Last week the pound fell as low as $1.40 as traders tracked polls suggesting a flagging ‘Remain’ campaign.

–IANS

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