Investors flee to safety as Brexit takes a lead in polls

INVESTORS are flocking to safe havens after a surge of support for Britain leaving the EU.

Traders were going for the Japanese yen, traditionally seen as a low-risk currency, and there has been a surge in demand for Government bonds.

The yen reached a three-year high against the euro earlier this week.

Traders are also rushing to insure themselves against a further fall in the pound – which on Monday hit a two-month low against the dollar – if Britain votes to quit.

And the jitters have seen gold prices jump to a one-month high of more than $1,281 per ounce.

In a further sign the authorities are starting to take an ‘out’ vote seriously, Reuters reported that the Bank of England and the European Central Bank would publicly pledge to shore up markets in the event of Brexit.

This turmoil has been sparked by a series of polls suggesting the Remain camp’s warnings are failing to convince voters.

A procession of Establishment figures have issued dire predictions about the impact of a socalled Brexit. US President Barack Obama, Bank of England governor Mark Carney and Chancellor George Osborne all claimed it could wreck the economy.

Osborne also called on a longtime ally, International Monetary Fund boss Christine Lagarde, to make the case for voting in. The IMF will release an annual report on the UK economy days ahead of the June 23 referendum. It is expected to deliver a damning verdict on the prospects for an independent UK.

But to the growing dismay of Remain campaigners, the polls suggest voters are minded to back Brexit. The latest survey from YouGov puts Leave seven points ahead on 46pc.

Analysts expect even more turmoil in the run-up to the referendum – a normal consequence of knife-edge votes as traders get nervous and seek safety until after the decision.

The pound was down 0.7pc against the dollar at $1.41. And desperate investors also ploughed money into bonds, which are prized in turbulent times for offering solid returns.