The British pound tanked over 9 per cent against dollar on Friday and hit its lowest level since September 1985 as UK referendum counting hinted as 'Brexit' taking a lead over 'Bremain' on chances that Britain will leave the European Union.
The British pound tanked over 9 per cent against dollar on Friday and hit its lowest level since September 1985 as UK referendum counting hinted as ‘Brexit’ taking a lead over ‘Bremain’ on chances that Britain will leave the European Union, according to TV reports.
With half of 382 counting areas declared, the ‘Leave’ camp was put at 51.3 per cent against 48.7 percent for ‘Remain’, according to Reuters calculations.
Pound was trading 9.26 per cent down at 1.34 against dollar (at 8.45 am IST). Global brokerage House HSBC has cut UK pound forecast o $1.20 by year end.
Later, the currency closed 6 per cent down at 1.36 against dollar.
Anindya Banerjee, currency analyst, Kotak Securities said that’ “travelling to United Kingdom will become cheaper with pound falling. He expects pound to be 1.20 against dollar by year end and at 82-83 levels against the Indian rupee.”
Global commodities as financial markets were also trading lower as a Brexit would be seen as a major threat to global growth. US crude shed $2.02 to $48.09 a barrel in erratic trade while Brent fell $1.91 to $49 per barrel.
Gold prices in the international markets soared more than 3 per cent thanks to its perceived safe haven status. The yellow metal was trading 3.37 per cent up at $1303.66 per troy ounce.
According to agency report, the pound jumped initially as the voting in the referendum closed and opinion polls indicated ‘Bremain’ leading over Brexit. However, it started to fall as results began to indicate stronger-than-expected support for quitting the bloc.