Sterling plummets to a new 31-year low against the dollar

 
Jake Cordell
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It hasn't quite fallen off a cliff. But sterling isn't doing too well at the moment
It hasn't quite fallen off a cliff. But sterling isn't doing too well at the moment (Source: Getty)

Sterling has crashed to a new 31-year low against the dollar as markets continue to digest the implications of the UK's vote to leave the European Union.

The pound dropped by 3.3 per cent this morning to $1.3180 – lower than during the chaos that engulfed the currency markets on Friday morning.

As the polls closed on Thursday evening, the pound was trading at around $1.50, its highest level of 2016, as financial markets were convinced the UK was on track to stay in the EU.

In an incredible night of swings, however, the currency had crashed to below $1.33 by the early hours of the morning, after Leave notched up impressive victories and it became clear the UK had voted for the exit door.

Brexit Britain: What you need to know

Sterling is now trading at its lowest level since 1985, where the currency reached near parity with the dollar, breaking below the floor previously set on Friday morning.The pound also tumbled against the euro, falling to €1.1999, it's lowest level since 2014.

Banking shares were battered for a second consecutive day, with trading suspended on both RBS and Barclays as they crashed by more than ten per cent.

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