Sterling drops to 31-year minimum

On Friday, the British pound plunged to a 31-year minimum, following anxiety over a tough exit by the UK from the European Union, which caused a wave of selling, thus leaving the major British currency vulnerable to further descends.

Earlier, the sterling unexpectedly sagged approximately 10% from levels about $1.2600 to $1.1378. The given move took place just in a matter of seconds, during thin early Asian trade.

Then, the pound rapidly bounced back to levels approximately $1.2500, and after a series of choppy moves, it was last trading at $1.2432, still descending 1.5% on the day.

On Thursday, French President Francois Hollande told that the European Union required remaining firm with the United Kingdom after Prime Minister Theresa May had opted for a more radical exit from the European Union.

In recent days global financial markets have been on edge on concerns regarding a hard exit by the United Kingdom from the EU and May's recent comments on the impact of loose monetary policy.

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