Value of sterling plummets after Brexit vote
The value of sterling has plunged in the wake of Britain’s decision to leave the European Union.
The pound dropped in value 10% to $1.33, while stock prices are also set to dive once markets open.
The Nikkei fell 8%, while the value of gold rose 7%.
The magnitude of the move in the value of sterling is unmatched by the single-day falls caused by the financial crash of 2009 or Black Wednesday in 1992.
Earlier last night, the pound was worth up to $1.50, as the markets anticipated a Remain vote.
Tory minister Andrea Leadsom, who used to work in the City before becoming an MP, said the UK needed to stay calm in the face of the volatility.
She told the BBC: “The market will always position itself to try and take profit from something like this. They got it wrong and now there’s a very big surprise and so it’s perfectly likely that there will be some volatility, but the fundamentals in our economy remain very strong…
“If we keep calm and if we take measured decisions and don’t rush into things then it will be fine and it’s a superb opportunity for the UK.”