Pound skids to 30-year-low

Britain battled to stop worldwide Brexit alarm on Monday as pound sterling crumbled to a three-decade low against the dollar, while bank, airline and property shares plummeted.

Other world markets steadied a little after Britain’s June 23 vote to abandon the European Union wiped $2.1 trillion off international equity values on Friday.

Analysts warned of a volatile period ahead as global investors grappled with the financial consequences of the Brexit referendum.

“Today I want to reassure the British people, and the global community, that Britain is ready to confront what the future holds for us from a position of strength,” Britain’s finance minister, George Osborne, declared before European financial markets opened. Britain’s economy is “as strong as could be”, the minister said.

The pound skidded to $1.3222 in morning London trade, its lowest level against the dollar since September 1985.

“Mr Osborne’s comments have clearly prevented a much more dramatic decline Monday morning, but markets will remain incredibly volatile throughout the long-winded process of exiting the EU,” said Interactive Investor strategist Lee Wild.

Stephen Innes, senior trader at OANDA Asia Pacific, warned sterling “is vulnerable” and predicted an interest rate cut and said that London’s status as the global financial capital will crumble” if it losses its EU’s “passporting” rights.