Pound Tumbles To 5 1/2 Month Low – 17 June, 2019

Growing fear that Britain could be on path for a no deal Brexit were further elevated when Boris Johnson became the front runner to replace Prime Minister Theresa May, causing the pound to drop to just above this years low. The pound fell to a 5 1/2 month low of $1.2532 before settling at $1.2539. Against the euro, the British currency fell to its lowest since January, with the euro climbing to 89.50 pence. The Australian dollar also struggled, falling to its weakest since January on expectations of another rate cut. The Aussie dropped to $0.6855, barely above its 5 1/2 month low of $0.6849 hit overnight on growing U.S.-China tensions. The euro last traded at $1.1220, and the dollar was steady at 108.53 yen.