Connect with us

Hi, what are you looking for?

Britain's Prime Minister David Cameron has warned voters that a Brexit would damage the British economy/AFP


Pound hits 2016 high as Britain gears up for Brexit vote

 Britain's Prime Minister David Cameron has warned voters that a Brexit would damage the British economy/AFP

Britain’s Prime Minister David Cameron has warned voters that a Brexit would damage the British economy/AFP

TOKYO, Japan, Jun 23 – The pound on Thursday rallied to its strongest level against the dollar this year, just hours before Britain’s knife-edge vote on its future in the European Union kicks off.

Traders are betting heavily that voters will cast a ballot in favour of staying in the 28-member bloc, analysts said, despite opinion polls pointing to a neck-and-neck race.

“Markets seem to have almost entirely priced in a ‘Remain’ vote win, meaning that the market moves and volatility around the vote may be far less than many had expected,” Angus Nicholson, a Melbourne-based market analyst at IG, said in a commentary.

“Nonetheless, markets are still incredibly nervous and some sharp market moves are likely over the next 24 hours.”

In midday Tokyo trading the pound bought $1.4800, after briefly hitting $1.4844 — its highest level against the US unit this year — and up from $1.4737 Wednesday in New York.

Sterling also jumped to 154.84 yen from 153.55 yen on Wednesday, while it was at 1.3051 euro, from 1.3038 euros.

While two polls on Wednesday showed the “Leave” side with the slimmest of leads, bookmakers were giving a more decisive edge to the “Remain” camp.

“The pound is moving in tandem with what bookmakers are showing, which is clearly pointing to one direction,” Masafumi Yamamoto, chief currency strategist at Mizuho Securities, told Bloomberg News.

“But the rise in the pound now is no guarantee that the outcome of the actual result will show the stay camp prevailing.”

In other trading, the greenback rose to 104.62 yen from 104.51 yen in US trade, while the euro gained to $1.1339 and 118.65 yen from $1.1313 and 118.24 yen.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...