Currency News: The Brexit Referendum Is Effecting The Pound

Currency News

Many in the UK have been buying up British pounds as fears that the sterling could fall as the vote in the UK referendum is approaching.

Currency News

A recent rally in the pound has sparked the surge, with leading foreign exchange firms reporting some of their highest traffic of the year. Although preliminary polls point to the UK voting to stay in the EU.

Moneycorp said today was its busiest day of 2016. It reported that it has traded £1.75million through its Gatwick bureaux alone and a 28 per cent increase in currency bookings compared to this time last year. Additionally, the Post Office in the UK saw a 215 per cent increase in online sales last weekend and a 57 per cent uplift in online sales worth more than £500.

Tracy Bownes, retail director at Moneycorp, believes the EU referendum has made consumers more aware than ever of currency rates, as many are caution as to what currency to hold their money in.

Many argue that the reasoning for this phenomena was due to the increase in the value of the pound on the financial markets, as polls began pointing firmly towards a ‘stay’ vote after negative impacts of leaving the EU were addressed by Treasury and Chancellor George Osborne.

The pound has been a good indicator of public feeling during the referendum campaign.

The pound fell to its lowers point, when compared against the euro when it hit €1.2354 in April as traders realized the referendum is near. However, since the pound has strengthened by 7 per cent to trade at €1.32.

Against the dollar the pound stands at $1.4708 – approaching one of its highest levels for the year.

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