October 27, 2016

Sterling reverses course, falls after narrow Remain win in Newcastle

A woman poses with a Bank of England twenty pound note bearing the image of Edward Elgar in Edinburgh

Sterling slid sharply, falling two cents against the dollar from a 2016 high above $1.50 after the UK referendum vote count in the north-eastern city of Newcastle showed only a marginal vote to keep Britain in the European Union.

Newcastle had widely been expected to show a stronger backing for Remain, and the slender margin cast doubt on an earlier nationwide opinion poll that pointed to a 52-48 percent win for Remain.

Sterling fell as low as $1.4804 GBP against the dollar, wiping out all its gains that had lifted it above $1.50 for the first time this year on the back of the initial YouGov poll. It was last trading at $1.4834.

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