Brexit: Pound swings as volatility climbs to record before vote

By Anooja Debnath & Netty Idayu Ismail

The pound fell to the lowest level in two months against the dollar as anxiety about a potential British exit from the European Union continued to build.

The pound dropped for a fourth day Monday as polls published over the weekend did little to lend clarity to the probable outcome of the referendum with the pro-EU camp and those supporting an exit running neck and neck. Hedge funds and other large speculators doubled their net short positions on the pound to the most since June 2013.

“Everything is about Brexit right now,” said Richard Falkenhall, a trading strategist at SEB AB in Stockholm.

“Speculative accounts have added onto long dollars and long yen positions. People are adding to shorts in the pound and in the euro. When you watch the polls they’re tighter than they’ve ever been. So there is a lot of uncertainty out there.” Pound fell 0.6% as of 1:12 p.m. London time, having earlier dropped 1% to $1.4116, the lowest since April 14. It depreciated 0.7% to 79.49 pence per euro.