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Forex - Pound hits 2-month lows as Brexit fears mount, yen rallies

Published 13/06/2016, 09:15
© Reuters.  Sterling falls to 2-month lows on Brexit fears, safe haven yen strengthens
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Investing.com - The pound fell to two month lows against the dollar on Monday and hit multi-year lows against the stronger yen as worries over a U.K. referendum on European Union membership next week took hold.

GBP/USD was down 0.49% at 1.4185, the weakest level since April 18.

Sterling has sold off in recent sessions amid fears that a U.K. exit or Brexit from the EU in the June 23 referendum could trigger a period of uncertainty in financial markets and hit growth in the region.

An opinion poll on Friday conducted by ORB International put support for a Brexit at 53%, against 47% for remaining.

The pound hit two-month lows against the euro, with EUR/GBP advancing 0.62% to 0.7941.

The safe-haven yen, which tends to be sought out by investors in times of market uncertainty, rose to multi-year highs against sterling and the euro.

GBP/JPY was down 0.39% at 150.5, the lowest level since mid-August 2013 after ending Friday’s session down 0.95%.

EUR/JPY fell to lows of 118.99, the weakest since February 2013, before pulling back to 119.68.

The yen also gained ground against the dollar, with USD/JPY down 0.73% at 106.22.

The euro pushed higher against the greenback, with EUR/USD rising 0.2% to 1.1273.

The Japanese currency received an additional boost overnight as weak economic data out of China and Japan hit the outlook for Asian economic growth.

Data from China showed that growth in fixed-asset investment fell below 10% for the first time since 2000 in the January to May period.

Another report showed that Japan's business survey index of sentiment at large manufacturers fell to minus 11.1 in the second quarter, from a reading of minus 7.9 in the first three months of the year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.08% to 94.56.

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