Euro lost 1% on growing concerns about the "Brexit"

22.02.2016

On Monday, the euro fell more than 1% against the dollar and weakened against the yen amid fears that the possible exit of Britain from the European Union could have a negative impact on the Eurozone economy.

EUR/USD reached lows at 1.1004, its lowest level since February 3 and was traded at 1.1015, shedding 1.07% over the day.

The single currency fell to a three-year low against the yen: EUR/JPY was down 0.64% to 124.56, the lowest level since April 2013.

The euro strengthened against the pound position which fell in all directions: EUR/GBP pair has jumped by 1.22% to 0.7821.

Concerns about "Brexit" intensified after the announcement of the Mayor of London Boris Johnson to support the campaign to exit the UK from the European Union in a referendum scheduled for June 23.

Johnson has undermined the authority of the Prime Minister David Cameron campaign for the conservation of the EU membership on new conditions after he has reached an agreement with the leaders of the European Union at the end of last week.

Earlier on Monday, several members of the Conservative Party said that also support the exit of Britain, and some of the closest business advisers of the Prime Minister opposed the approval of the agreement with the EU.

According to some sources, cited by Sky News, at least half of the 20 business advisors (Business Advisory Group) refused to sign a letter stating that the exit of the UK from the EU will increase the risks to the UK economy.

The rating agency Moody's Investors Service said in a report released on Monday that "it is still difficult to predict" the outcome of the referendum.

"In our opinion, the decision to leave the European Union have a negative impact on the credit rating of the UK", - warned a senior vice president of Moody's.

The pound fell to a six-year low against the dollar: GBP/USD pair fell 2.3% to 1.4074.

The pound was also sharply lower against the yen: GBP/JPY fell 1.83% to 159.30.

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