Pound hit by fears over broader impact of Brexit

London

THE safe-haven yen soared to a 3.5-year high against the struggling British pound on Wednesday on growing fears about the broader impact on financial markets and the global economy of Britain's vote to quit the European Union.

Sterling was down 1.8 per cent against the yen, hitting its lowest level since late 2012, as investors sought safe-haven assets such as highly rated government bonds. The pound also hit a 31-year low against the dollar at US$1.2798 as fears of foreign outflows and Bank of England rate cuts hit the currency hard. It recovered from those lows, but was still down 0.5 per cent at US$1.2960.