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Goldman Sees Pound Tumbling by as Much as 20% on `Brexit'

  • Bank predicts decline to $1.15-$1.20 if U.K. leaves EU
  • Says U.K. current-account deficit makes economy vulnerable
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The pound could fall as much as 20 percent if Britain quits the European Union, according to Goldman Sachs Group Inc.

The U.S. investment bank doesn’t expect U.K. citizens to vote to leave the EU in the referendum that may be held as soon as June. But if they did, it predicts sterling could drop to $1.15-$1.20 -- levels last since in 1985. It was at $1.4638 as of 9:25 a.m. London time on Thursday.