UK referendum raises Europe-wide currency-market risks

London

BRITAIN'S referendum on its membership in the European Union is not just a threat to the pound. It is raising currency-market risks across the continent.

While the pound led declines among major currencies on Monday with its biggest slide since 2010, the euro had the second largest decline, weighed down by signs of slowing growth. The cost of options protecting against losses on Europe's 19-nation currency also jumped. The UK's potential exit may damage trade and encourage other members to renegotiate their relationship with the EU, signalling scope for further losses in the euro in the run-up to Britain's June 23 referendum.