Pound hits new low against Singapore dollar
SINGAPORE – The British pound hit an all-time low against the Singapore dollar on Monday, hitting S$1.7910 at 8pm, according to Bloomberg data.
An employee is seen walking over a mosaic of pound sterling symbols set in the floor of the front hall of the Bank of England in London, in this March 25, 2008 file photograph. Photo: Reuters
SINGAPORE – The British pound hit an all-time low against the Singapore dollar on Monday, hitting S$1.7910 at 8pm, according to Bloomberg data.
The previous record was set on Friday following the news of Britain’s vote to leave the European Union when the sterling hit S$1.8021.
The sterling on Monday also lost more than 3 per cent against the US dollar, to hit a fresh 31-year low of US$1.3221. The euro rose more than 2 per cent to 83.25 pence, its highest in more than two years.
Analysts said that the pound could go lower against the US dollar.
“With the Leave vote creating greater uncertainty over the outlook for the economy and BoE (Bank of England) policies biased towards further easing/renewed QE (quantitative easing), sterling is vulnerable to further near-term selling pressure,” said Mr Athanasios Vamvakidis, FX strategist at BAML.
“A push below US$1.30 cannot be ruled out,” he added.
Others, like Unicredit, reckon the pound will fall even further, perhaps as low as US$1.20.
“The clear risk must be for further downside,” said Mr Neil Mellor, a currency strategist at Bank of New York Mellon in London. (WITH AGENCIES)
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