As the in-out debate on the future of Britain’s membership of the European Union seems to favour a Brexit outcome – the pound sterling has fallen against the U.S. dollar.
The British pound fell against the dollar due to very real fears that Britain will vote to leave Europe in the June 23 referendum.
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The sterling fell to a near seven-year low during the session after popular London Mayor Boris Johnson said he would campaign to leave the EU ahead of a June 23 referendum.
Worries about a possible British exit from the EU sent the euro down 1 percent against the dollar. The sterling fell 2 percent against the greenback and dropped as low as US$1.4057.
“A Brexit would be bad for sterling, but it would also be bad for the euro,” said Neil Jones, Mizuho’s head of hedge fund sales in London.
The dollar, meanwhile, was up 0.9 percent against six currencies.
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