British pound plunges 6.1% in mysterious flash crash

The British pound has plunged more than 6 percent against the US dollar amid mounting concerns over the UK’s exit from the European Union (Brexit).

The pound lost about 6.1 percent of its value to $1.1841 in a matter of two minutes shortly after currency markets opened in Asia on Friday. The sterling later on recovered to 1.24 against the dollar.

The flash crash left investors stunned and analysts blaming computerized trading programs for intensifying the dizzying plunge.

“I’ve been trading sterling since 1978 through every crisis it has seen, and I’ve not seen anything like this,” said Ian Johnson, FX strategist at 4Cast, the consultancy.

“It was just another quiet day in Asia, and then, Bang! All the lights went red,” said Matt Simpson, senior market analyst at ThinkMarkets in Singapore.

It was the biggest intraday drop against the dollar since its 11.1 percent plunge on June 24 in the wake of the EU referendum on June 23, when nearly 52…

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