The pound has fallen to its lowest level against the US dollar in seven years following Boris Johnson’s decision to back the “out” campaign in the upcoming EU referendum.
The mayor of London, along with several other MPs, has opted not to support prime minister David Cameron on the issue ahead of the referendum on June 23. Sterling dropped by up to 3% on Monday, reaching a low of £1.40 against the US dollar. The decline was the steepest in 24 hours since March 2009.
The pound was also down by three quarters of a cent against the euro - its lowest level in more than a year.
On Tuesday the pound was worth $1.41 and €1.28.