So it starts, British Pound Falls on Fears of EU Exit. Imports from EU set to become more expensive

British Pound Falls on Fears of EU Exit

After many high-profile British politicians backed the campaign to leave the European Union, the pound sterling fell against the U.S. dollar.

The British pound fell sharply against the dollar on fears Britain would leave the European Union.

The sterling fell to a near seven-year low during the session after popular London Mayor Boris Johnson said he would campaign to leave the EU ahead of a June 23 referendum.

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Worries about a possible British exit from the EU sent the euro down 1 percent against the dollar. The sterling fell 2 percent against the greenback and dropped as low as US$1.4057.

“A Brexit would be bad for sterling, but it would also be bad for the euro,” said Neil Jones, Mizuho’s head of hedge fund sales in London.

The dollar, meanwhile, was up 0.9 percent against six currencies.

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