Pound drops to new lows as Brexit fears consume markets

Among major currencies, sterling’s loss of more than 5 per cent against the US dollar this year ranks as one of the worst market performances, with only Mexico and Argentina falling further, the FT reports.

After dropping a full 2 per cent on Monday, the biggest one-day decline for the UK currency since October 2009, sterling has continued declining, hitting a low of $1.3965 on Wednesday — its lowest level since 2009.

The risk of the UK leaving the EU has dragged sterling into rarely visited territory against the dollar.

During the post Bretton-Woods era of freely floating currencies, the $1.40 level has effectively been a floor for the pound.

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