Pound Falls as Risk of Brexit Mounts on Brussels Terror Attack

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The pound posted the biggest decline among major currencies amid speculation the Brussels terror attacks boost the case of campaigners who want to see Britain out of the European Union.

Sterling fell the most in a month versus the dollar as the tragedy risked turning the U.K. currency into even more of a political football. Pro-“Brexit” politicians argued that migration leaves Britain vulnerable to attack, while figures in the opposing camp, including Prime Minister David Cameron, have said that being part of the economic and political union aids security. The euro weakened against almost all of its major peers as investors shed European assets as confidence fell after the blasts.

Sterling fell Tuesday by the most among 17 major peers tracked by Bloomberg, sliding 1.1 percent to $1.4207 and 0.9 percent to 78.92 pence per euro as of 1:12 p.m. in New York. The shared currency declined 0.3 percent to $1.1213.

Source: Bloomberg