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Pound approaches 5-month high as odds show UK to remain in EU

Wednesday, June 22, 2016 - 09:33
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The pound approached a five-month high against the dollar as bookmakers' odds indicated a growing probability Britons will vote to remain in the European Union.

[SYDNEY] The pound approached a five-month high against the dollar as bookmakers' odds indicated a growing probability Britons will vote to remain in the European Union.

Sterling has climbed at least 1.8 per cent against all its Group-of-10 peers in the past week on signs of dwindling support for Brexit following last week's murder of UK member of parliament Jo Cox, who backed staying in the EU.

An index of odds compiled by Oddschecker put the probability of a vote to remain at 79 per cent, up from from 63 per cent on June 14, even as differences in polling results for the respective campaigns show the outcome of Thursday's vote isn't yet a foregone conclusion.

"A fair bit of repricing has occurred in the pound on the back of the shift in polls that were earlier clearly favoring 'Leave' after the tragic murder of the Labour MP last week, said Rodrigo Catril, a currency strategist at National Australia Bank Ltd in Sydney.

"The pound will definitely be volatile ahead of the vote."

Sterling advanced 0.2 per cent to US$1.4674 as of 9:46 am in Tokyo after appreciating to US$1.4783 on Tuesday, the strongest level since Jan 4. The UK currency appreciated 0.1 per cent to 76.64 pence per euro.

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