Brexit impact: Pound falls to 31-year-low against the US dollar
On Sunday, British PM Theresa May had announced that the country will start the formal process to exit the European Union in March 2017.
The British pound fell to a 31-year-low against the US dollar on Tuesday, slipping by more than half-a-percent to trade at £0.78 to the dollar, Reuters reported. On Monday, the currency fell by more than 1% after British Prime Minister Theresa May on Sunday announced that the country will start the formal process to exit the European Union by the end of March 2017. The two sides will enter an initial two-year-long negotiation period after the process is started.
The pound and the British economy continue to face the impact of the United Kingdom’s decision to exit the EU. In September, auditing company KPMG found that more than three-fourths of the chiefs of companies in Britain are considering moving base abroad as a result of the vote. KPMG United Kingdom Chairman Simon Collins said company heads were coming up with contingency plans in the wake of uncertainty over the UK-EU divorce.
In a historic referendum in June, Britain had voted 52% to 48% to exit the EU.