Pound recovers from historic 31-year low

British sterling is now up against the dollar at nearly $1.35, following an ongoing recovery from an historic 31-year low recorded earlier this week.

The news comes following the aftermath of last week’s European Union (EU) Referendum vote, which cast a shadow of uncertainty over Britain’s future and pushed sterling down to $1.3192 – its lowest level since 1985.

Numerous media sources reported that the pound plummeted almost 11 per cent on June 23, the day the results were in.

Watchdogs labelled the drop ‘the worst one day decline in recent history’.

Against the euro, the pound was down to €1.1983 on Monday – its lowest since March 2014.

But the tables have now turned, and the pound reached €1.22 against the Euro on Wednesday – representative of a slow, but substantial recovery from the Brexit vote’s hit.

Over the same one week period, London’s leading stock market index, the FTSE 100, recovered to sit just above where it closed last week before the results of the polls were announced.

The FTSE 100 closed up at 6,360.6 on Wednesday, in comparison with 23 June’s closing of 6,338.1.

Earlier this week, Chancellor George Osborne told the general public: “It is inevitable that Britain’s economy is going to have to adjust to the new situation we find ourselves in.”