Almost all the world currencies are falling against the dollar after the release of preliminary data on Brexit, which shows that the British vote for withdrawal from the European Union.
Against the background of these news shows record decline in the British pound, which for the first time in 30 years has fallen below a mark of $1,35. According to the 06:30, the pound fell by 9.8%. This course the last time was in 1985, according to Bloomberg.
Emerging-market currencies also falling against the dollar on risk aversion. Weak Polish zloty, Hungarian Forint and South African Rand. The value of the dollar rose to 4.1 zlotys, up by 7.7%. The Forint, the dollar rose by more than 6% and reached 290,8 forints per 1 us dollar. Rand dropped 6.8% against the dollar as of 11:25 a.m. in Hong Kong, and reached a record low against the yen, according to Bloomberg.
The Russian ruble is also dropping against the dollar. In the OTC Forex platforms and on the Chicago stock exchange on the high dollar exchange rate has reached 67 rubles, but by 6:30 it’s rate dropped to 65,24 RUB on the Eve of Thursday, June 23, the dollar traded on the Moscow exchange on 63,84 RUB, down for the day more than on the ruble.
“To some extent, this is a shock,” Bloomberg quotes the words of the head of Asian research at ING Groep NV in Singapore Tim Condon. The currency index MSCI Emerging Markets Index fell 1.3%.
Of currencies perceived as more vulnerable, will be under pressure in case of a Brexit, said portfolio Manager Martine Currie Investment Management Paul Denis Bloomberg.
Informed about the weakening of the ruble in the event of a British exit from the EU, warned the head of Sberbank German Gref. “It will be a panic”, — said Gref about the consequences of Brexit for Russia in an interview with Blomberg TV at the St. Petersburg international economic forum (SPIEF). According to him, it would undermine Russia’s recovery from the recession and strike at the foreign exchange and stock market. The head of Sberbank believes that Brexit may lead to reduction of Russia’s GDP by 1%, shares of Russian companies may fall in price by 5-10%. “It will have a very negative impact on our economy, on our exchange rate and on the investors in Russian securities. I’m not sure if this is going to continue in the long term, but the first reaction can be very bad” — said Gref.