Brexit and sterling

Synopsis

On Monday, the pound experiences its largest decline in over six years after London Mayor Boris Johnson endorses the Leave campaign ahead of the Brexit referendum. Roger blitz, the FT's currencies correspondent, discusses the implications of a weaker pound, noting that while exporters may benefit, importers and holidaymakers face challenges. In the context of global currency wars, Roger highlights that falling currencies are desired by Europeans and Japanese alike. He points out that the FTSE 100 companies are less tied to the UK economy and more influenced by global factors. The pound's fall of two percent this week is significant, reflecting a broader trend of decline over the past year, which raises concerns about economic stability as seen during previous events like the Scottish referendum and global uncertainties in late 2014.