Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Pound sterling drop: What does it mean for you?

The Independent's Economics Editor, Ben Chu, explains how the falling pound will affect you

Ben Chu
Economics Editor
Monday 31 October 2016 13:09 GMT
Comments
What does the falling pound mean for you?

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Sterling has taken a mighty pounding since the Brexit referendum on 23 June.

On the night of the referendum the value of the UK’s currency plunged by 11 per cent against the US dollar – its biggest intra-day fall in modern history.

And the pound has been on the slide again since the beginning of October in the wake of Theresa May’s pledge to commence the UK’s official EU divorce proceedings by March 2017.

Sterling currently trades at almost 20 per cent below its level on the eve of the referendum.

Some economists and pro-Brexit politicians say sterling was overvalued going into the referendum and that this depreciation is a natural, even welcome, correction.

But most economists judge the slump reflects a new pessimism among financial traders about the economic prospects of the British economy due to the Brexit vote.

And many suspect the pound may have even further to fall in the months ahead.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in