Pound edges up after hitting 31-year low

Tokyo—The pound rose in Asia Tuesday after hitting a new 31-year low in New York on worries about the effects of Britain’s exit from the European Union, but analysts warned it could face fresh selling as the crisis develops. Prime Minister David Cameron and Finance Minister George Osborne sought to send a message of reassurance to markets on Monday but that was unable to stop agencies Standard & Poor’s and Fitch stripping the country of its triple-A rating. In afternoon trade Tuesday sterling bought $1.3315 in Tokyo, up from $1.3228 in New York, where it at one point sank to $1.3121, its lowest level since September 1985.
Takashi Miwa, chief economist at Nomura Securities, said that investors “could expect a slight rebound” in the currency “in the short run” as a liquidity shortage had apparently been avoided in the aftermath of Thursday’s shock exit vote.—AFP

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