Value of Pound lowest since 1985 as Britain votes to leave EU
The value of British Sterling hit its lowest value since 1985 after Britain has voted to leave the EU.
The GBP hit a low of just 1.33 USD this morning, the lowest level in over 30 years, and has stabilised at 1.41 USD, dropping from over 1.5 USD yesterday.
The 10 per cent drop in the value of the pound is the biggest one-day fall ever seen. 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.
The pound also 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 longlasting implications for home owners.
Markets in Asia plummeted over night with the news of the EU referendum vote and London's main share index the FTSE is predicted to open severely down.
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
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
Only 3yrs ago pound to euro £1.10.
— The Paddle of Rebuke (@thetuskenraider) June 24, 2016
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
Just because the pound fell yesterday it means jack shit in the long run, 17 million people wanted this so get the fuck on with it!
— Brit Longstaff (@BritLongstaff) June 24, 2016