The fall of sterling against the dollar continues for the third week on the background adopted in the referendum of the decision to withdraw Britain from the European Union. Since the beginning of the year the British currency fell against the dollar by more than 13%, which is the worst performance among 31 global currencies, according to Bloomberg data. The pound thus outstripped by the drop in the dollar Argentinian peso.
Since the beginning of the year has depreciated against the us dollar 9 currency among them, in addition to pound and the Argentine peso, Mexican peso, Polish zloty, Chinese offshore yuan and the Turkish Lira.
“The pound will fall much lower due to uncertainty in investments and growth prospects,” said Bloomberg economist at Societe Generale Keith JAX.
On Wednesday, the pound fell to $1,2798, which is the lowest point of the British currency against the U.S. in 31 years. As of 16:30 on 8 July, the pound against the us dollar was $1,2980. In late June surveyed by the Financial Times, analysts believed that the pound may fall to $1.1 within a few weeks. About the coming fall of the British currency before the referendum, also warned billionaire investor George Soros, who said that the pound may fall against the dollar by 20%. By 8 July, the pound lost against the dollar since the Brexit of 13.2%.
The weakening pound is accompanied by a decrease in consumer confidence of the British. According to July 5, it reached a minimum at 21 years.