Sterling on track for biggest drop against US$ in 6 years

London

THE pound sterling headed towards its biggest loss in almost six years against the dollar on Monday, hit by a rise in the odds on a "Brexit" after a handful of senior ruling Conservatives joined the campaign to leave the European Union (EU).

The scale of the reaction on the pound sterling, a 2 per cent fall to a seven-year low against the dollar, driven chiefly by the defection of London Mayor Boris Johnson to the "out" camp on Sunday, also sent government bond prices lower. However, bluechip share prices were higher, with a cheaper pound seen as helping exporters.