Post Brexit, the pound continues to wobble

27 June 2016
pound continues to wobble

The pound is still having a rough time in the fallout of the Brexit vote, dropping against the US dollar.

After Friday's result in the EU Referendum, it saw a spectacular crash, then climbed a bit, and has been wobbling ever since. It has dropped by more than 2% on top of the 10% plunge seen after the referendum, as markets resume trading in Asia.

The pound has fallen to $1.34, and against the euro, it was down 1.4% at €1.21.

Of course, this is still early days and there's a chance it'll go back to normal, but this is all a pain for those wanting to change their money for their holidays over summer.

Either way, it is currently at a 31 year low.

The Chancellor, George Osborne says that he's going to do everything he can to get this sorted, but then, you'd hope so because that's literally his job.

He did say this morning, that it won't be an easy job, and for the time being, we're still in the EU so there's hope some order will be restored while the Government works a plan out.

Osborne noted that there's not going to be a Brexit Budget in the short term. All the while, global stock markets lost around $2 trillion in value before the weekend.

The FTSE 100 closed 3.2% down on Friday, and the Hang Seng Index fell 1.36%. The Nikkei 225 index was up 2.34%, after nosediving by almost 8% on Friday.

Christine Lagarde, managing director of the International Monetary Fund, said: "How they come out in the next few days is going to really drive the direction in which risk will go."

"[The financial markets were] very much under control. We didn't see those sort of panic moves."

So, there's quite a lot of financial turmoil around at the moment, and it isn't going to be fixed quickly or easily. Someone needs to make a plan though, and soon.

TOPICS:   Economy

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