KUALA LUMPUR: The pound sterling slumped to a near two-month low of 5.4535 against the ringgit on Friday as Britain voted to exit the European Union (EU), which caused immediate turmoil on financial markets.
At 3.04pm, the pound was off the low and was quoted at 5.6280 against the ringgit, but it was still down 5.24% in intra-day trade.
Reuters reported the sterling sank 10% in value to its weakest since before the 1985 Plaza Accord on Friday after Britain voted to leave the European Union, triggering a rush of capital into the traditional security of the yen and the Swiss franc.
Alongside the biggest moves in the pound in living memory the euro, which is expected to struggle given worries about the impact of a “Brexit” on the euro zone economy, also dropped sharply against the dollar.
Reuters reported the Bank of England said on Friday it would take all necessary steps to shield Britain’s economy from the shock decision by voters to pull the country out of the EUn which caused immediate turmoil on financial markets.
“The Bank of England is monitoring developments closely,” it said in a statement after the referendum victory of the “Leave” campaign triggered a 10 percent fall in the value of sterling and a slump in government bond yields to a new record low.