Pound continues fall to new 31-year low

UK-Currency-Money-Coin-Pounds-GBP-700x450The pound has continued to fall overnight against the US dollar, hitting $1.2798.

The currency went below $1.30 for the first time since June 28 1985 earlier in the day. However, early Asian trading led the pound to drop further, hitting a low not seen since June 20 1985.

The pound has now fallen about 14 per cent against the dollar since the result of the EU referendum, hitting $1.4789 at close of markets the night before the referendum result.

Investor confidence was hit yesterday after the Bank of England warned about some of the risks to the UK economy. In its financial stability report, the Bank warned the housing market could pose a risk to the UK’s financial stability.

Bank of England governor Mark Carney also warned against using the rising FTSE 100 as a metric to measure the health of the UK economy. Instead, he said, the slumped FTSE 250 points to the economic gloom ahead.