British pound hits new 31-year low against dollar

Sterling hit a new 31-year low against the dollar on Wednesday, falling below 1.30 dollars to the pound amid concerns about the effects of Brexit on the nation's finances.

Analysts expect the pound to fall further after losing about 15 per cent of its value against the dollar since Britain voted to leave the European Union in a June 23 referendum.

The Bank of England warned on Tuesday that it saw "evidence that some risks have begun to crystallize" since the referendum and the country's outlook for financial stability was "challenging."

The fallout from the referendum is likely to increase risks including a potential drop in foreign direct investment, and rises in household debt and unemployment, the central bank said.

Last update: Wed, 06/07/2016 - 11:25

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