The British pound has tumbled to a new 31-year low as risk-averse investors flee financial market uncertainty sparked by the Brexit vote. They have turned to the Japanese yen and gold as safe-haven assets.
Amid mounting Brexit woes, global investors have shunned Britain's currency, driving the pound in European trading on Wednesday briefly below $1.28 (1,15 euros) - a new 31-year low - before the currency slightly recovered.
In Asian trading earlier in the day, the pound even fell as low as 1.2798 against the US dollar - its lowest level since June 1985 - and cutting about 13 percent off the value of the currency since Britons voted to leave the EU in a referendum on June 23.
Concern has grown in the past two days about financial stress in global markets as a result of weakening growth in the wake of the referendum. Adding to the woes was a move by the Bank of England on Tuesday to lower banks' capital requirements in support of post-Brexit lending, which analysts view as a prelude to further monetary easing, likely to drive the pound even lower.
In a further sign of market uncertainty, three of Britain's biggest property funds suspended trading earlier this week, following increasing redemptions by investors, who expect falling UK real estate prices.
"Just when you thought it was 'safe to go back in the water,' the pound got pounded as speculation around Brexit forms into something more concrete," said Stephen Innes, senior trader at OANDA Asia Pacific.