Pound weak on post-Brexit fallout
TOKYO—The pound was sitting at three-decade lows Monday morning as currency markets were left reeling from Britain’s shock decision to leave the European Union. Sterling collapsed to its lowest level since 1985 on Friday ahead of official referendum results as early numbers suggested that the vote would surprise markets, which had widely expected voters to opt for the status quo. On Monday morning in Tokyo, the pound was at $1.3379, off $1.3670 in New York but still above $1.3229, its lowest point earlier Friday.
“People are finding it difficult to comprehend what Brexit implies for the future—we don’t know yet what the magnitude of the shock will be,” Steven Barrow, head of Group-of-10 strategy at Standard Bank Group in London, told Bloomberg News. The euro bought 82.07 pence against 81.31 pence, while the dollar ticked up to 102.34 yen, from 102.21 yen on Friday. Japan’s currency surged Friday as traders scooped up the safe-haven unit, seen as a safe bet in times of turmoil.
But the rally in the yen, which had already been on the upswing before the vote, poses a threat to profits at major Japanese exporters.—AFP