Pound edges up af­ter hit­ting 31-year low

Pakistan Observer - - ECONOMY WATCH -

TOKYO—The pound rose in Asia Tues­day af­ter hit­ting a new 31-year low in New York on wor­ries about the ef­fects of Bri­tain’s exit from the Euro­pean Union, but an­a­lysts warned it could face fresh sell­ing as the cri­sis de­vel­ops. Prime Min­is­ter David Cameron and Fi­nance Min­is­ter Ge­orge Os­borne sought to send a mes­sage of re­as­sur­ance to mar­kets on Mon­day but that was un­able to stop agen­cies Stan­dard & Poor’s and Fitch strip­ping the coun­try of its triple-A rat­ing. In af­ter­noon trade Tues­day ster­ling bought $1.3315 in Tokyo, up from $1.3228 in New York, where it at one point sank to $1.3121, its low­est level since Septem­ber 1985.

Takashi Miwa, chief econ­o­mist at No­mura Se­cu­ri­ties, said that in­vestors “could ex­pect a slight re­bound” in the cur­rency “in the short run” as a liq­uid­ity short­age had ap­par­ently been avoided in the af­ter­math of Thurs­day’s shock exit vote.—AFP

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