The pound to dollar fell to the lowest level in 7 years amid fears of an exit from the EU

The pound to dollar fell to the lowest level in 7 years amid fears of an exit from the EU


LONDON, February 22. /Corr. Ilya Dmitriev/. The rate of the British pound against the dollar fell to the lowest level in 7 years amid increased fears of a possible exit of the country from the European Union (EU).

By the middle of trading session the British currency has lost 2.4% against the dollar, dropping to $1,4060 for 1 pound. This was the lowest ratio in the pound – dollar since March 2009. In parallel, 1.4% strengthened against the pound and the Euro. Now for €1 give 0,7833 pound.

According to analysts, investor sentiment influenced by the strong announced yesterday by mayor of London Boris Johnson’s decision to lead the campaign of the supporters of the country’s withdrawal from the EU at a scheduled for 23 June referendum. Joining an influential politician from the Conservative party eurosceptics to the worsened position of party leader and Prime Minister David Cameron, is actively campaigning for the continued membership in the EU.

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“Overall, I think that, most likely, we will see further weakening of the pound until the vote as the debates are getting hotter, and the uncertainty undermines confidence,” quotes the business newspaper Financial Times expert opinion of the French Bank Societe Generale Keith Juxa.

Oil was added to the fire today, and Moody’s. It warned that the exit of the United Kingdom from the European community of States may adversely affect the credit rating of the UK. The Agency said that “economic costs” from the decision to leave the EU may “exceed economic benefits” from such a step. Moody’s has not excluded that it may consider “reflection of these threats credit assessment great Britain by assigning the negative Outlook of the sovereign rating of Aa1 following the decision to exit (from the EU) following the results of voting”.

Taking into account the fall of the pound has lost 3% since the beginning of January that was the biggest decline among major global currencies.