Sterling fails to recover from flash crash

Fears over 'hard Brexit'

There was no sign of sterling bouncing back from last week's flash crash this morning as the currency remains hovering around the $1.24 mark.

Sterling was down 0.4% to $1.2380 against the US dollar this morning, however it shortly recovered to trade just above $1.24. On Friday, the pound plummeted 6% to $1.1491 in a matter of minutes during Asian trading, to hit its lowest rate since 1985. The latest fall means that since the Brexit vote at the end of June, sterling has fallen 14.5% against the dollar. The flash crash prompted Bank of England governor Mark Carney to order an immediate investigation into the issue. It is widely thought the cause of Friday's flash crash was algorithms reacting to a news report about a pote...