Brexit Pains: The Pound Takes a Serious Pounding
The currency’s 18 percent drop since the vote reflects mounting fears of a hard exit.
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The U.K. currency has become the most prominent victim of the Brexit debate, falling 18 percent against the dollar since the British voted in June to withdraw from the European Union. The pound is the worst performer among major currencies this year.
The reason? Sterling has become the main vehicle with which investors can express their dismay, first at the vote, then at signals by politicians that the government is heading for a so-called hard Brexit, an exit agreement with the EU that puts more emphasis on controlling immigration than on maintaining maximum access to the EU market’s 500 million customers.