British pound falls 2.1 percent on 'Brexit' fears

It was the pound's largest one-day drop since 2009.
By Ed Adamczyk  |  Feb. 22, 2016 at 8:01 AM
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LONDON, Feb. 22 (UPI) -- The value of the British pound fell over 2 percent Monday after London's mayor announced his support for Britain leaving the European Union.

Mayor Boris Johnson is the most prominent British politician to announce his backing of what is known as the "Brexit," to be determined in a June 23 national referendum. His announcement Sunday is a setback for Prime Minister David Cameron, whose negotiations in Brussels last week secured a deal, pending the referendum, to reset Britain's relationship with the EU. Like Cameron, the popular Johnson is a Conservative Party member and is regarded as Cameron's potential successor.

At one point Monday, the pound traded at $1.41020, a 2.1 percent decline and the largest one-day drop since 2009. It fell 1.1 percent against the Euro.

The pound has already declined over 17 percent against the U.S. dollar in the past 18 months. Several Conservative Party ministers have indicated they will support a move to separate Britain from the EU.

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