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Pound falls again against dollar despite Osborne intervention

Published 27/06/2016

Sterling slumped to its lowest level since 1985 on Friday after the result of the EU referendum
Sterling slumped to its lowest level since 1985 on Friday after the result of the EU referendum

Sterling continued its steep slide against the dollar on Monday as concerns about the British economy deepened in the wake of Brexit.

The pound plunged 3.41% against the greenback to 1.32 dollars, following on from Friday's colossal 10% dive.

At one point, the pound fell to its lowest level since 1985 at 1.31 dollars.

Against the euro the pound was also down, falling 2.37% at 1.19 euro.

Chancellor George Osborne had contributed to a mini-rally early on Monday morning after he spoke of Britain's strong economy and claimed the country remains "open for business". However, the gains soon evaporated, with experts warning that months of uncertainty could see more volatility.

Chris Saint, senior analyst at Hargreaves Lansdown, said: " Further significant losses for sterling aren't out of the question, especially if incoming data confirms the UK economy's slowdown and lifts the likelihood of further Bank of England stimulus to support growth.

"Britain's vote to leave the EU has driven investors towards safe haven currencies, such as the Japanese yen. The yen rose by a huge 12% against the pound on Friday and has gained almost 4% more today, despite Japanese authorities saying they will intervene to try to stem the yen's rise if they deem it excessive."

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