Sterling suffered a dizzying “flash crash” against the euro and dollar yesterday in a computer-generated sell-off, sending Brexit shockwaves across markets after France warned of perils for Britain
Operators in Japan watching as the value of the pound drops. Pic/AFP
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London: Sterling suffered a dizzying “flash crash” against the euro and dollar yesterday in a computer-generated sell-off, sending Brexit shockwaves across markets after France warned of perils for Britain.
The pound plunged more than six percent against the dollar in under 10 minutes in Asian trading hours — at the end of a tumultuous week after Prime Minister Theresa May signalled she would trigger Britain’s departure from the bloc by end of March.
A spokesman for the Bank of England said it was “looking into” the cause of the crash.
Speaking Thursday, French President Francois Hollande sent one of the strongest warnings yet that Britain will have to pay a heavy price for leaving the EU, while European Commission chief Jean-Claude Juncker said the bloc must be “unyielding”.
The pound fell off a cliff to strike a 31-year low at $1.1841, before rebounding back above $1.24. “A lot of investors are still scratching their heads as to how and why it happened,” said an analyst. Agencies
6%
Drop in the pound sterling rate within 10 minutes
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