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Pound hits 7-year low amid Brexit panic

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The pound has hit a seven-year low against the dollar, as fears about the UK leaving the European Union sparked nervousness among investor.

Yesterday the pound dropped by 2.4 per cent at its lowest to hit $1.4059, lower than the $1.4079 low on 21 January. The fall marked its weakest rate against the dollar since March 2009, when the Bank of England cut interest rates to 0.5 per cent.

The drop yesterday establishes the pound’s position as the worst performing currency in 2016 so far, being down 3 per cent since the start of the year.

The currency weakness came as Moody’s warned a Brexit would be more negative for the UK economy than positive.

It warned that leaving the EU could lead to a downgrade of the UK’s credit rating, adding that the result of the referendum on 23 June is “too close to call”.

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  1. Just the start. If we leave just be prepared to put your head between your legs and kiss your bottie bye-bye.

    With the falling pound just watch prices rise and inflation take off – probably just what Osborne wants anyway. Sovereignty? As ever just left to it our Governments are expert of making a muck of it. Freedom to do our own trade deals? Germany doesn’t seem to suffer! Look at their manufacturing compared to ours. UK manufacturing has been in relative decline since the 1960s. Manufacturing as a share of real GDP has fallen from 30% in 1970 to 12%. No, we can’t just rely on shuffling other people’s money. There is more to the UK than just London.

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