Concern over Britain’s place in the EU has pushedthe pound below $1.39 for the first time since 2009,a level associated with previous crises for the currency.
Sterling dropped as much as 1 per cent against the US dollar to an intraday low of $1.3876 onWednesday — the lowest in seven years.
The $1.40 level has long been seen as a de facto floor for the pound, and one it has rarelytraded under for an extended period since the mid-1980s.
The pound has faced sustained pressure throughout this week, as concerns have risen aboutthe outcome of the upcoming referendum on the UK’s place in Europe following the decisionof Boris Johnson, the London mayor, and Michael Gove, justice secretary, to support the Outcampaign.
本周英镑持续承压。在伦敦市长鲍里斯•约翰逊(Boris Johnson)和英国司法大臣迈克尔•戈夫(Michael Gove)决定支持退欧之后，投资者对即将举行的英国退欧公投的结果愈发感到担忧。
This week’s decline has added to sterling’s status as the year’s worst-performing majorcurrency against the dollar and follows fresh warnings about the potential economicconsequences of a UK vote to exit the 28-nation bloc in June.
HSBC said the “uncertainty” following a vote to leave the EU could shave as much as 1.5percentage points off UK growth by the end of next year, and cause inflation to rise.
“If sterling were to fall by around 15 per cent to 20 per cent, as our currency strategistspredict, UK inflation could rise by up to 5 percentage points,” the bank said. “In the event of avote for Brexit, concerns about deflation could swiftly give way to worries of stagflation.”
The perceived increase to the chances of Brexit led to a 1.8 per cent fall for the pound againstthe dollar on Monday, its biggest one-day drop since May 2010. It is down more than 5.7 percent in 2016.