Pound hits fresh lows as Brexit impact worries surge

Latest Update: July 6, 2016 | 422 Views

New York: The British pound hit fresh lows against the dollar and euro Tuesday amid new warnings from the Bank of England over the possible damage to global growth from BritainĀ“s vote to leave the European Union.

The pound sank over two and a half cents to $1.3028, and against the euro fell to 85.00 pence, up just over one pence.

In its biannual report the BoE highlighted a number of risks emanating from the vote to leave the EU, including a hit to the commercial real estate market from the possible relocation of banking jobs to other European cities.

“There is evidence that some risks have begun to crystallize. The current outlook for UK financial stability is challenging,” it said.

Meanwhile the yen was the preferred safe haven, pushing to 101.75 against the dollar and 112.69 against the euro.

In the United States the yield on the benchmark 10-year Treasury bond fell to a record low, settling at 1.367 percent, in another sign of the flight to safety as markets continued to convulse in the wake of the June 23 Brexit referendum.



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