News / Economy

British pound hits another 31-year low

Thursday, 06 October 2016 8:53 PM [ Last Update: Friday, 07 October 2016 1:03 AM ]

The British pound dropped sharply on Thursday afternoon, touching fresh three-decade lows.

The British pound has plunged to a new low against the US dollar due to growing concerns about the UK’s departure from the European Union (EU).

The sterling fell below $1.27 level, down to just $ 1.2621 on Thursday afternoon, as Chancellor of the Exchequer Philip Hammond flew to New York to reassure Wall Street after Britain’s vote to exit the EU (Brexit).

This is the weakest level pound has seen since June 1985 and it is down 2.3 percent from Monday after Prime Minister Theresa May confirmed the timing of the UK's formal exit from the EU, which she said will happen before March 2017.

Experts have warned that leaving the EU will severely hurt London’s position as a financial hub, unless the UK decides to keep its access to the single EU market by loosening its stance on immigration.

British Chancellor of the Exchequer Philip Hammond (Photo by AFP)

On Wednesday, May vowed to build a "united Britain" in which "fairness is restored" and opportunities are shared more equally, admitting the Brexit vote has been a “turning point” for the country.

May pledged that her government would re-balance economy in certain sectors to spread wealth and warned that she would fight until the end with those who seek to split apart Britain.

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