The pound sterling to the dollar on Tuesday and fell 1.3 percent, setting a new low for more than 30 years. About 12:00 GMT the value of the British currency dropped to £1,3115 for $1 — the lowest level since 1985.
The exchange rate of the pound against the Euro on Tuesday has decreased on 1,1% — to £0,8485 for €1, reaching the lowest level since October 2013.
The last time the pound was fresh lows against the dollar on Monday, June 27. Then the pound fell to £1,3118 for $1. On 23 June, when the UK held a referendum on the country’s membership in the EU, the pound was trading at $1.5. After the morning of 24 June it became known about defeat opponents Brexit in a referendum the pound has fallen by more than 10%, having fallen to 1985 levels.
The pound continues to fall amid fears that the outcome of the vote had a negative impact on the confidence of investors, says Bloomberg. In particular, based in Scotland, Standard Life Investments has suspended transactions in its real estate Fund with a volume of $3.8 billion, citing the rising number of applications of investors to purchase “due to the British commercial property market uncertainty”.
According to the polling company YouGov and the Centre for economic and business studies, the pessimism concerning economic prospects of the UK after the referendum has increased almost twice.
On the market British currency now a lot of nervousness,” said LAN Huene, strategist at Commerzbank AG in Frankfurt. Currency strategist at Bank of Tokyo-Mitsubishi UFJ Lee Hardman said that the weakening of the pound “reflects the growing fears of a sharp slowdown in economic growth in the UK.”
Almost three-quarters of economists surveyed by Bloomberg expect the economy to slide into recession. The deterioration of forecasts and said the Bank of England Governor mark Carney. American billionaire George Soros in a column published by the newspaper The Guardian three days before the referendum, predicted that in case of victory of the eurosceptics, the pound will fall below $1,15.