Pound shifts from best to worst currency - Brexit uncertainty elevates

The pound has shift from the best-performing currency at the beginning of the year to the worst one this quarter.

The sterling may not be doing much better in the next three months, as the UK is in the middle of the leadership competition and rising exit risk without a deal by the European Union in October, say strategists and fund managers. Amundi Asset Management believes the currency is "impossible to predict", while Commerzbank AG sees it in a downward trend until November.

"Investors have reduced their exposure to pounds as the risk of any transaction has risen again and this has led to high uncertainty," said Andreas Koenig, head of global currencies at Amundi. "There are other currencies that are more driven by economic development and central bank policies that offer greater visibility at the moment."

The pound fell 2.5 percent against the dollar over the past three months to trade around $ 1.27, coining the worst among the 16 major currencies tracked by Bloomberg. This followed 2.2% profit in the first quarter.

Source: Bloomberg Finance L.P.

Graphics: Used with permission from Bloomberg Finance L.P.

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