Belfast Telegraph

Sterling recovers slightly after post-Brexit battering

Sterling found some respite in overnight trading on Tuesday after taking a Brexit battering that saw it fall to a 31-year low.

The pound rose 0.7% to 1.33 dollars, a rebound from Monday's 1.31 dollars, its lowest level since 1985.

Against the euro, sterling was up 0.19% to 1.20 euro.

The British currency and the FTSE have taken a pounding since the shock referendum result, which has led to volatility across global stock markets.

On Monday, Standard & Poor's stripped the UK of its tripe-A credit rating following the vote. The rating agency downgraded the country's sovereign rating by two notches, from AAA to AA, saying the vote is a "seminal event" that "will lead to a less predictable, stable and effective policy framework in the UK".

It adds to fears that Britain is heading for a recession, with economists across the board slashing their growth forecasts for GDP and businesses halting investment and hiring decisions.

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