UK pound falls below five dirhams as Brexit uncertainty continues

The pound fell below the five dirham mark to a near 31 year low on Monday morning, as UK stocks opened sharply lower in the midst of enduring uncertainty over the Brexit fall out. Sterling resumed its slide against the dollar and the euro, even as UK chancellor George Osborne this morning broke a three-day […]

The pound fell below the five dirham mark to a near 31 year low on Monday morning, as UK stocks opened sharply lower in the midst of enduring uncertainty over the Brexit fall out.

Sterling resumed its slide against the dollar and the euro, even as UK chancellor George Osborne this morning broke a three-day silence to try and reassure markets.

Mr Osborne said he had been in contact with the governor of the Bank of England and other central banks, and that the government had “well thought through contingency plans” in the wake of Thursday’s vote to leave the EU.

Such comments provided only modest comfort for European investors; the FTSE 100 opened around 0.8 per cent lower, while the Euro Stoxx 50 opened off around 0.6 per cent.

Asian stocks rebounded following Friday’s sell offs, Japan’s Nikkei closing up 2.39 per cent.

Shares in the UAE also showed signs of recovery in early trading, after falling sharply on Sunday.

The Dubai Financial Market General Index rose by around 1.25 per cent in the first hour of trading, led by Emaar Properties and DIB, with Abu Dhabi’s headline index about half a per cent higher at the same time.

jeverington@thenational.ae

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Source: Business

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