Pound falls below 1.97 level to Singdollar in fresh 2.5 year low on 'Brexit' fears

The pound fell below the 1.97 level to the Singapore dollar on growing worries that Britain may vote to leave the European Union.
The pound fell below the 1.97 level to the Singapore dollar on growing worries that Britain may vote to leave the European Union.PHOTO: EPA

SINGAPORE - The pound on Wednesday (Feb 24) fell below the 1.97 level to the Singapore dollar on growing worries that Britain may vote to leave the European Union.

The UK currency was trading at 1.9679 to the Singdollar as of 11.06am on Wednesday, down 0.74 per cent from its close on Tuesday at 1.9826.

The last time the pound closed in trading below the 1.97 mark was Aug 14, 2013, according to Bloomberg data.

 

The pound fell below 2 to the Singapore unit on Monday after Prime Minister David Cameron's deal with the EU to avoid "Brexit" last Friday was challenged by popular London Mayor Boris Johnson who declared his support for the exit campaign in the June 23 referendum.

On Tuesday, six members of Mr Cameron's Cabinet announced they would support leaving, a move that underscored rifts in the ruling Tory Party.

The bosses of more than a third of Britain's top companies urged voters to keep the country in the EU, warning that an exit would threaten jobs, AFP reported.

The UK currency was also trading at a new seven-year low to the US dollar of US$1.40 on Wednesday, after dropping to US$1.3975 in morning Tokyo trade, its lowest since March 2009.