EU referendum uncertainty (and Boris Johnson) sends pound to seven-year low against the dollar

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The fall has been attributed to Boris Johnson's decision to back the "leave" campaign (Source: Getty)

Who knew Bojo had such influence over markets?

The pound has gone into free fall today, showing its biggest one-day fall against the dollar in more than a year, as uncertainty over the EU referendum began to take hold.

The pound fell more than 1.5 per cent against the dollar this morining, dropping as low as $1.4176. The fall has been attributed to Boris Johnson's decision to back the "leave" campaign. Sterling later fell to $1.4067 – its lowest since early 2009 – taking its losses for the day to 2.28 per cent.

(Let's just all take a minute to remember the image of Bojo waving the Union flag as he dangled helplessly from a motionless zipwire. Got it? Ok then).

The pound also fell against the euro, dipping 1.3 per cent to €1.2773, and fell 1.5 per cent to ¥159.682 against the Yen, its lowest since November 2013.

Read more: Moody's - the economic costs of Brexit will outweigh the benefits

"While UK businesses, particularly those with international trade and exposure to currency movements have bemoaned the strength of the pound and the effect on profit margins, a weak currency based on a lack of confidence in the economy is not ideal and could present itself as a harbinger for economic softness," said Brenda Kelly, head analyst at London Capital Group.

"Certainly, today’s move can be attributed to Brexit, and possibly Boris Johnson putting his weight behind that outcome but the overall weakness in sterling lately has been down to a lack of hawkishness from the MPC as well as a fairly volatile backdrop in equity markets driving investors in to the safe haven of the German bund of late."

Or, as she also put it:

https://twitter.com/Brenda_Kelly/status/694912945860513793

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