Sterling sank as low as $1.1841 in early Asian trading, according to data compiled by Bloomberg, the lowest since March 1985. The pound pared the drop to trade 1.5 percent weaker at $1.2428 at 11:21 a.m. in Tokyo. Some traders saw the possibility of human error, or a so-called “fat finger,” with algorithms adding to selling pressure at a time of day where liquidity is typically low. Contracts on the U.K.’s benchmark equity gauge, where exporters have been rallying as the weaker pound buoys the outlook for earnings, added 0.7 percent. The pound has dropped 16 percent since the referendum to leave the world’s biggest single market, and is 2016’s worst performer among 31 major currencies tracked by Bloomberg.

Source: The Star October 07, 2016 03:00 UTC