“Amid the hyperbole and today’s vertiginous fall, Sterling’s one saving grace is that the Euro is likely to be hit almost as hard by a Brexit,” says David Lamb, head of dealing at FEXCO Corporate Payments.
“So the Pound’s collapse relative to the single currency has been mitigated as both race to the bottom.
“But against the Dollar, no quarter has been given. The Pound’s early plunge today was magnified by its late night rally – which saw it rise to USD1.50 as the global markets bet on a Remain win.
“The painful question now is how far, and for how long will it fall? But talk of freefall is overblown. With Mark Carney pledging to do whatever it takes to prop up the UK economy, in many ways we’re back to where we were a few months ago.
“The difference now is the uncertainty has no end date attached to it. With Cameron’s decision to go likely to delay the formal start of Brexit negotiations until his successor is in post, the messy business of Brexit will take even longer. As a result uncertainty and doubt could gnaw away at the Pound for years.
“While a prolonged fall in Sterling will help British exporters, the financial markets are entering an unknown future of extreme volatility. Such severe swings will create winners, losers and many sleepless nights."