The British pound is still getting destroyed.
The currency plunged by over 11.0% to a low as 1.3239 against the dollar around 12:30 a.m. ET (5:30 a.m. BST) after Britain voted for a Brexit.
That’s a 30-year low.
The sterling has since recovered a little, and is currently down around 8.4% on the day, trading at roughly $1.3628 as of 12:04 p.m. ET (5:04 p.m. BST). It has been more or less steady around this level all morning, despite the resignation of prime minister David Cameron.
“The usual caveats exist about liquidity but these moves are concerning and bring back pretty painful memories of 2008,” Jeremy Cook, chief economist at the international payments company, World First, said in an emailed statement to Business Insider earlier on Thursday evening ET.
“GBPUSD didn’t have this bad a day in the Global Financial Crisis and the moves by the bookies to price Leave as the favourite is killing the pound. News from Wales is the most concerning at the moment alongside the London turnout dynamics.
As for the rest of the world, here’s the scoreboard:
- The Japanese yen is up by 3.7% at 102.30 per dollar and up by 11.8% at 139.43 against the pound. Investors generally consider the yen to be a safe-haven currency, and so they tend to pull into it when things get rocky in the markets. The euro is down by 2.2% at 1.1138 against the dollar. “… concern about the economic fall-out in Europe is likely to see the Euro fall further in the weeks ahead….” wrote Societe Generale’s Kit Juckes in a note to clients after the Brexit results. The Australian dollar is down by 2.1% at .7457 against the dollar after trading as high a .7648 in early Asian trade when folks were feeling confident that the Remain vote would win. Notably, Credit Suisse’s Damien Boey argued in a note the clients: “There is an emerging school of thought that perhaps the AUD is a relative safe-haven given issues in Europe, UK, Japan, and China. Each of these economies has reached a critical point where existing growth models have either failed, or become unsatisfactory.” The Canadian dollar was down 2.0% at 1.3024 per dollar around 8 a.m. ET – the most in six years. The US dollar index is up 1.9% at 95.38.