Brexit vote slams Aussie dollar

Peter 24 June 2016

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Predicted volatility causes Aussie dollar to drop.

The Australian dollar and share market took a hit after polling results from the Brexit vote.

The United Kingdom has voted to leave the European Union (EU).

The vote was tight with 52% of Britons voting to leave the EU versus 48% who wishing to remain a member of the politico-economic powerhouse.

It was predicted markets would react with volatility and currencies would fluctuate wildly in the wake of a Brexit vote.

Polling was conducted between 7am and 10pm BST Thursday 23 June and votes were counted overnight to determine the result.

The ABC reports that as the Leave campaign gained momentum, the Great British Pound (GBP) slumped more than 8% after a stronger than expected result in the Sunderland electorate.

At its weakest point the GBP/USD sank to a 30-year record low of US$1.346.

The Aussie dollar wasn't as heavily affected but still followed suit, falling 2.9% to US$0.738.

AUD/GBP rates have been incredibly volatile lately with the currencies shifting almost $0.20 over the last month, according to Australian Dollar Forecast.

At 2:15pm AEDT exchange rates for AUD/GBP were up 6.81% to £0.54.

You can compare a range of different money transfer services to find cheap, quick and convenient ways to send money overseas.

Picture: Shutterstock

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2 Responses

  1. Default Gravatar
    LindaJune 27, 2016

    I am travelling to GB and Europe next year, will I benefit buying Euro or Pounds now ?

    • Staff
      ShirleyJune 28, 2016Staff

      Hi Linda,

      Thanks for your question.

      The Brexit seems to have affected the GBP mostly, so you may want to consider purchasing pounds now.

      DISCLAIMER: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information applicability to their own particular circumstances.

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