The pound’s wild fluctuations are causing more distress for businesses already struggling under an unprecedented lockdown of the U.K. economy.
The pound continued to lose ground against the dollar and euro on Monday as uncertainty over the future of Theresa May’s fragile Government weighed on the currency.
The pound fell in Asian trading after a weekend terror attack in London killed seven people, days before the nation votes in a snap election.
Brent crude prices dipped 1.3% to 51.34 US dollars (£39.39) per barrel as investors fretted about a smaller than expected drop in US crude inventories reported by the US Energy Information Administration.
The pound tumbled to eight-week lows on Tuesday as investors started to fret over the prospect of a second Scottish referendum and the pending trigger of Article 50.
The plunge in the value of the pound can help to restore the fortunes of Aberdeen’s commercial property market, an expert said yesterday.
The pound took a further hit after leaked documents warned a “hard Brexit“ could cost the UK more than £66 billion a year, but London’s FTSE 100 Index hovered near record highs.
Britain’s powerhouse services sector bounced back last month, as output beat expectations and returned to growth following July’s shock contraction.
Global stock markets sunk into the red as last week’s post-Brexit relief rally unravelled while the pound also sunk to fresh 31-year lows against the dollar.
The collapse in the pound since U.K. voters chose to quit the European Union means more expensive imports of oil, natural gas and industrial metals, although some farmers and distillers may have cause to celebrate.
The Bank Of England has said it is "monitoring developments closely" after the UK voted to leave the European Union.
The pound has crashed to its lowest level in 30 years as Britain heads for the European Union exit door, with experts warning of worse to come.