Political Risks Roil Currency Market, Pummeling U.K. Pound, Rand
- Terms of Britain’s exit from EU spark speculation on impact
- South African finance minister is summoned to face charges
How Much Lower Can Sterling Go?
This article is for subscribers only.
Political risks upended foreign-exchange markets Tuesday, sending currencies from the British pound to South Africa’s rand tumbling.
The pound dropped to near the weakest level since 1985 as investors assess the nation’s economic outlook as it prepares to exit the European Union. The rand plunged the most in more than three months after the nation’s finance minister was summoned to appear in court to face charges. Haven demand drove the dollar to the highest level since July and pushed yen up against all major currencies.