Worst Four Days Since June Push Sterling Below $1.23

Sterling slid back below $1.23 on Tuesday as senior officials and investors pointed to the potential for more falls for a market still in shock after Friday’s 10-percent flash crash.

The past four days for the pound are now its worst since the aftermath of the vote to leave the European Union in June and Bank of England policymaker Michael Saunders warned a “bumpy” Brexit could sharply reduce British economic growth.

“Given the scale and persistence of the UK’s current account deficit, I would not be surprised if sterling falls further, but I am fairly agnostic as to whether any further depreciation is likely,” Saunders told lawmakers in a written submission.

Reuters

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