The UK citizens voted for Brexit!

24.06.2016

The pound sterling is experiencing the most volatile session in modern history, and reached the lowest level since 1985, as the British voted for the exit from the EU, triggering a flight to safe currencies such as the yen and the dollar.

The residents of the United Kingdom at yesterday's referendum voted in favor of the exit from the European Union structure. 52% of the votes were for the British exit from the block, and 48% - for the maintaining of the membership.

Scotland and London by an overwhelming majority voted in favor of EU membership, but Wales and the rest of the United Kingdom voted in favor of Brexit.

The turnout at the referendum was 72%, which is about more than 30 million people.

The British Prime Minister David Cameron made a call to the stability and unity. It is announced that he already resigned after the shocking results. 

The leader of the Independence Party of the United Kingdom (UKIP) Nigel Farage said that the campaign, which supports the output of Britain from the European Union, was won by "real people" and on June 23 there will be the "Independence Day".

Euro slowed down more than 3% against the dollar, the Swiss franc has increased along with the yen. However, high volatility made traders wary of the intervention by the G7.

"The markets are in a panic after the upbeat jumps from the yesterday. People sell the pound and all that relates to it, buying assets, which as distant as possible in relation to the pound, such as US Treasury bonds and the yen," - said Ayako Sera of Sumitomo Mitsui Trust Bank.

The pound fell more than 10% to $ 1.3300, the lowest level since September 1985, when the five leading economies agreed to weaken the dollar. Yet, later it recovered to $1.39.

The pound fluctuated between 133.65 and 160.10 against the yen, and then was set at the level of 139.10, having lost 11.8 %.

The euro fell 3.5 % against the dollar to $ 1.0988, the lowest level since March.

The collapse of the European currency pushed the dollar index up 2.9%. If the trend continues, it will be the highest one-day growth since 1978.

The dollar fell to 99.00 yen, having lost 6.7 %, and then slightly recovered to 102.40. It dropped below 100 yen for the first time since the end of 2013.

The euro fell to 109.50 yen, the first time since the end of 2012.

The stock markets of European countries, Japan and the UK are also going down. FTSE stock index lost more than 7%, Nikkei index fell 6%, and DAX fell more than 6%. 

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