Pound Dips to 31-year Low With 3.2% Loss Over Brexit Panic

In the wake of Britain’s exit from the European Union,the United Kingdom financial markets have taken on a volatile market as Pound sterling dipped to a 31-year low against the dollar, and some share trading temporarily halted.

The pound fell 3.2% to $1.32260, having earlier hit a fresh 31-year low of $1.3151, sinking below the level it had fallen to on Friday when it recorded its biggest one-day fall ever against the dollar. Against the euro, it was down 2.6% at €1.19990.

On the stock markets, the benchmark FTSE 100 index closed down 2.6% at 5982.2. Yields on 10-year government bonds sank below 1% for the first time as investors bet on an interest rate cut.

The falls came after Chancellor George Osborne tried to calm the markets. In a statement before the financial markets opened, his first since the referendum result, the chancellor said the UK was ready to face the future “from a position of strength.”

On Friday, June 24, the blue-chip index had plunged more than 8% at one point before recovering some ground to close 3.2% lower.

The FTSE 250 index, which mostly contains companies that are more UK-focused, closed down 6.96% on Monday after sliding 7% on Friday. The falls represent the biggest daily percentage falls since 1987.