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British Pound Outranks Argentina's Peso As Worst Performing Currency

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British Pound Outranks Argentina's Peso As Worst Performing Currency

The British pound, also known as the sterling, gained 0.34 percent Friday morning — a move that is hardly sufficient to erase its nearly 3 percent decline over the past four trading days; the currency is trading at levels it hasn't seen since the 1980s.

The British pound sank immediately following the country's national referendum known as Brexit revealed a surprising outcome. U.K. citizens voted to leave the greater European Union, which was an outcome the market was not necessarily expecting.

After trading as high as $1.5819 prior to the Brexit vote, the British pound was trading nearly $0.30 lower this week at $1.2798. According to Bloomberg, the pound is now the worst performing currency against the U.S. dollar among the world's 31 major currencies.

Related Link: Visa May See Benefits From Battering Of The British Pound

The pound even performed more poorly than the Argentine peso. Argentine President Mauricio Macri devalued the national currency in December and allowed the currency to float freely.

However, some experts aren't recommending that investors rush to buy British pounds at its multi-decade lows.

"Sterling's going to fall considerably further as the effects of that uncertainty on investment and growth emerge from the gloom," Bloomberg quoted Kit Juckes, a macro-strategist at Societe Generale SA in London as saying in a note to clients.

In the meantime, traveling to London is now a lot cheaper now than it was just a few weeks ago.

 

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