Pound sterling besieged

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TOKYO: The pound remained under siege on Monday, sliding back toward a 31-year low, reflecting the deeply bearish mood of investors after Britain opted to exit the European Union, triggering shockwaves across global markets.

The euro was also under pressure, pulled down by sterling, as Brexit clouded the future of the European Union.

Sterling was down 2.3 percent at $1.3381 GBP=D4, within shot of $1.3228 plumbed on Friday, its lowest since 1985. The pound dropped as much as 11 percent on Friday as positions betting on Britain remaining in the EU were reversed en masse.

The impact from Brexit - which also generated much turmoil in global equity, commodity and bond markets - was expected to grow due to its likely negative effect on the European economic and political landscape.

"The focus now falls on Europe, where Brexit could cause a domino effect of states wanting to leave the union. While this has already been talked about, the main concern for the currency market is European political uncertainty leading to monetary and fiscal policy paralysis," said Junichi Ishikawa, forex analyst at IG Securities in Tokyo.