According to news in the UK, the Sterling has gone down to a new 31-year low due to Brexit worries and that is very worrying. The Sterling has hit a 31-year new low against the dollar today (05/07/2016).
Investors are increasingly worried about the economic fallout of Britain’s vote which saw the country leave the European Union.
Such is the disastrous performance of the pound since the voting results it has slid as much as 1.3 percent on Tuesday to hit $1.3112, which unfortunately happens to be the lowest since September 1985.
Viraj Patel, who is a currency strategist at ING felt that, “One of the most striking things for us is the fact that he (Carney) spoke quite openly about the need for sterling to adjust to act as a stabiliser, and that its weakness was necessary…so that was actually a positive spin.”
UK real estate fund, which is one of Britain’s largest property funds, has suspended trading in all forms according to Standard Life Investments. They did that, due to increase in redemption requests which kept increasing after the fallout.
That is really shocking news indeed, which just goes to show the impact of Brexit having among the best and secure investment firms.
According to Alvin Tan, who is a currency strategist at Societe Generale, “Risk does seem to be under some pressure today – the news that Standard Life is suspending trading in its commercial property fund is having some impact for sure, and that’s contributing to the generally weaker tone in risk sentiment.”
A survey was conducted by the Britain’s services, which showed that businesses and firms were not very sure about the growth which has gone down to a three-year low and business expectations are extremely weak as of 2012.
The pound against the euro has slipped by more than 1 percent to 84.90 pence and against the Bank of England’s currencies, the sterling fell badly in more than three years.
Those of you planning to make purchases will want to avoid doing that as things don’t look in your favor. It is best to invest in strong currencies, apart from the pound, which at the moment, is very weak and will continue to be the same for some time.
