The British pound has had its worst fall on record, tumbling to a 31-year low against the U.S. dollar, as investors reacted to signs that the Leave camp was moving toward a victory in Britain’s referendum on its European Union membership.
Just after 4:30 a.m. in London (0330 UTC), one British television network, ITV, predicted that the Leave campaign would win. Ten minutes later, the BBC also called the race as a Leave victory.
The pound dropped to $1.34 by midday in Asia Friday, down from $1.50 just Thursday afternoon. That had been its highest level this year.
Investor concerns over Britain's likely departure from the EU lapped over into other currency markets, with the U.S. dollar sinking more than four percent against the yen. The euro also fell three percent against the dollar.
Stock markets in Asia also are down, with Tokyo’s Nikkei 225, Hong Kong's Hang Seng index and Sydney's ASX 200 all losing more than three percent. The markets had started the day up slightly. Gold prices are up more than four percent.
Traders in financial markets around the world have been bracing for this day. There have been forecasts that a Leave victory could send the pound tumbling by 15 percent, which would prompt investors to dump British assets and could roil markets around the globe.
The Organization for Economic Cooperation and Development, the International Monetary Fund and market economists have warned that the uncertainty caused by the so-called "Brexit" referendum could cause substantial economic impact.
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