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The pound is dropping again

Jun 27, 2016, 12:09 IST

It's been a chaotic few days in the currency markets, and the British pound has been taking the brunt of the pain.

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One of the most immediate market casualties of the UK's vote to leave the European Union was the value of the pound, which at one point fell over 10% against the US dollar to about $1.33, a 31-year low. It was worst single-day drop ever for the currency.

The pound is plummeting again against most major currencies, responding to the political chaos sparked by the Brexit vote.

Prime Minister David Cameron resigned on Friday, while Labour leader Jeremy Corbyn has said he will not be moved from the leadership despite a full-scale coup against him by the parliamentary Labour party, which began on Sunday with 11 resignations from his shadow cabinet.

The currency is down by more than 2% against the dollar as of 7:30 a.m. UK time:

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The same goes for the pound versus the Japanese yen:

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And it's off by more than 1% against the euro:

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Chancellor of the Exchequer George Osborne warned in a speech this morning that markets face more volatility, but that the UK's financial sector is ready to deal with it.

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