Pound drops to lowest rate in 31 years

The pound has hit a new 31-year low against the dollar as worries over the UK's exit from the European Union continued to affect the financial markets.

Wednesday, 6th July 2016, 9:43 am
Updated Thursday, 25th August 2016, 6:22 pm
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Sterling dropped to $1.2798 at one point in Asian trade, before recovering slightly to $1.2929.

The pound has now fallen by about 14 per cent against the dollar since hitting $1.50 ahead of the referendum result.

On the UK stock market, the FTSE 100 index opened down 11.47 points, or 0.2 per cent, at 6,533.90.

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The FTSE 250 - which contains more UK-focused companies - fell 0.4 per cent to 15,671.47.

Earlier, Asian stock markets had closed lower, with Japan’s Nikkei index down 1.9 per cent.