On Friday, the value of British Sterling hit its lowest value since 1985 after Britain voted to leave the European Union.
The GBP hit a low of just 1.33 USD on results morning, the lowest level in over 30 years, and has stabilised at 1.41 USD, dropping from over 1.5 USD on Thursday.
The 10 per cent drop in the value of the pound is the biggest one-day fall ever seen.
Markets in Asia plummeted overnight with the news of the EU referendum vote and London’s main share index the FTSE is predicted to open severely down.
https://twitter.com/tom_cullen/status/746234517224992768
The pound has fallen a further 2% as trading reopen in Asia on Monday, adding to the record-breaking overnight decline.
Japan and Chinese official warned of emerging threats to global economy in Brexit hangover as the pound continued to fall and Asian markets struggle to recoup heavy losses on Monday.
British chancellor George Osbounre tried to reassure financial markets with an early morning speech following the economic turmoil caused by the ‘Leave’ vote – the first time he has spoken publicly since the decision.
“Britain is open for business”, Osbourne told the press conference.
“Britain is ready to confront what the future holds for us from a position of strength”.
“Britain has the strongest major advanced economy in the world… I said we had to fix the roof while the sun shines – and thank goodness we did.”
For everyday people, a weaker pound means you can buy fewer dollars, euros or other foreign currency making buying goods and services abroad more expensive.
On Friday, pound dropped 7 per cent against the euro to €1.2085, with the European currency also falling 3.3 per cent against the dollar.
Many economists had predicted the pound to fall in value, as well as warning that the markets could suffer, and the housing market could lose up to 30% in value.
Instability is to be expected after such a huge decision, and not necessarily a cause for concern, but if the housing market suffers in the way some experts have predicted, it could have long-lasting implications for homeowners.
There were some pretty grim reactions about the pound on Twitter…
The pound is at its lowest level since 1985. I don't think anyone's getting 'their country back.' #EUReferendum
— Laurie Penny (@PennyRed) June 24, 2016
The pound at the lowest since 1985
Over 500 points expected to be wiped from the Ftse this morning
David Cameron time to step up #Brexit
— Scotty T MBE (@ScottGShore) June 24, 2016
https://twitter.com/trimbae/status/746234514494525440
Our currency strategists now forecast GBP-USD to be 1.20 and GBP-EUR to be 0.92, by end-
2016 – HSBC— David Keohane (@DavidKeo) June 24, 2016
FARAGE: “Victory! The pound is now at 1985 levels! With a little work we can push it back further! 1945… our glory days… here we come!”
— The DM Reporter (@DMReporter) June 24, 2016
https://twitter.com/Radicalshay/status/746234580403793920
Only 3yrs ago pound to euro £1.10.
— The Paddle of Rebuke (@thetuskenraider) June 24, 2016
https://twitter.com/Thirrant/status/746234524611182592
Although the tumbling value of the pound didn’t seem to bother some…
I think it's dropped like 8p 😂😂😂 still more value to pound than euro
— lana hood (@lanahood1) June 24, 2016
https://twitter.com/BritLongstaff/status/746234583163691008
https://twitter.com/danny_long1999/status/746234508152733696
