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Sterling slumps to five-year low amid turmoil

Sterling slumps to five-year low amid turmoil

The value of sterling against the dollar has reached its lowest point since June 2010, due to both a global slump in risk appetite and concerns over the UK’s position in the European Union (EU).

Sterling was trading at $1.4570 this morning, 0.4 per cent down since yesterday evening and 1.4 per down since the start of the year. Over the last month it has fallen more than 4 per cent.

The latest move has been pinned on fears around the UK’s forthcoming referendum on EU membership, as rumours that the vote could be held as soon as June begin circulating.

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Sterling has also been caught up in global market turmoil once again stemming from China, which has led to falls on global stock markets including the FTSE. The dollar tends to strengthen during periods of lower risk appetite as investors seek safe haven currencies.