The British pound fell more than 6 per cent to below $1.20 in two minutes on Friday amid concerns over the UK’s exit from the EU.
Shortly after currency markets opened in Asia on Friday, the pound lost as much as 6.1 per cent to $1.1841. The sharp nature of the move sparked speculation that it could have been triggered by a mistaken “fat finger” trade or a rogue automated algorithm, exacerbated by thinner liquidity during early Asian trade.
It was the currency’s lowest since May 1985 and the biggest intraday drop since the 11.1 per cent plunge on June 24 in the wake of the UK’s voteto leave the EU.
Pound expected to drop as much as 10% on Brexit 'leave' victory
If Britain votes to leave the European Union, the pound is expected to drop as much as 10 percent against the dollar, according to Stacey Gilbert, head of derivative strategy at Susquehanna Financial Group.
If there's an exit vote "I would say right now in terms of the pound we're seeing a move to 8 to 10 percent on the downside. That's a huge move in terms of a currency," Gilbert said Thursday on CNBC's Power Lunch.
Edited by minion, 07 October 2016 - 12:12 PM.