Pound slumps to new 30-year low against US dollar

The pound tumbled on Monday to the lowest level in almost 31 years on economic and political uncertainty after Britain voted last week to leave the European Union.  Other world markets steadied a little after Britain’s June 23 vote to abandon the European Union wiped $2.1 trillion off international equity values on Friday. 

Analysts warned of a volatile period ahead as global investors grappled with the financial consequences of the Brexit referendum.  “Today I want to reassure the British people, and the global community, that Britain is ready to confront what the future holds for us from a position of strength,” Britain’s finance minister, George Osborne, declared before European financial markets opened. Britain’s economy is “as strong as could be”, the minister said. 

The pound skidded to $1.3222 in morning London trade, its lowest level against the dollar since September 1985.  London’s FTSE 100 index, which boasts many international companies, fell 1.5 percent in morning trade, masking steeper falls in key sectors likely to be affected by Brexit.