Pound fell to 31-year low against the dollar during Monday trading session due to the concerns over the possible consequences of the British decision to leave EU.
UK currency touched its lowest level since mid-1985 year-$ of 1.3151, dropping 11.5 percent compared with the close of June 23 when a referendum on Britain’s membership in the EU took place. Analysts predict pound will extend its record weakening which is already supposed to be the worst performer in this year. A drop by 3.69 percent to the greenback to 1.3194 level failed to produce bidding backlash despite assurances from British Finance Minister George Osborne that the fifth largest economy in the world will be able to cope with the upcoming challenges.
The euro extends its weakness falling 1.07% to $1.0996 with a session low at $1,0971 level. Nevertheless, the common currency was trading slightly above Friday minimum of $1.0909.
Japanese Yen strengthened its position amid increased demand for heaven assets, although the growth was restricted by the expectations that BoJ may intervene to curb the uncontrollable rally of the national currency. The dollar slipped 0.51% to 101.67 yen, holding above Friday lows of two and half year near 99 yen.
The dollar index, which tracks the U.S. currency against a basket of six other major competitors climbed 1.10 percent to 96.494 points.
Gold traded in the expansionary zone on Monday as the lack of positive or negative news spun off uncertainty forcing investors to seek for more safety. The commodity futures for August delivery traded at a price of $1,328.70 per troy ounce, rising 0.48%. Prices peaked at 1.339,30 with a potential resistance point at $1.355.60.