Fresh falls for British pound over 'Brexit' fears
LONDON — The British pound hit a seven-year low against the dollar Wednesday amid continuing fears about Britain's membership of the European Union.
The pound declined 0.9% to $1.3887 in intraday trading, a swing downward that approaches lows last seen in 2009 during the financial crisis.
Financial news and commentary website MarketWatch reported that the pound has not experienced a "sustained period below $1.40 since the mid-1980s."
Driving that fear is what appears to be narrowing polls ahead of a June 23 referendum on Britain's participation in the 28-nation alliance.
Prime Minister David Cameron is backing staying in the bloc but a number of high-profile members of his Conservative party are not.
"Following a vote to leave, we think uncertainty could grip the U.K. economy, triggering a potential slowdown in growth and a collapse in sterling,” HSBC said.
A small majority of British voters favor remaining in the EU but markets have succumbed to so-called Brexit fears with polls showing about 10% of the electorate undecided about which way to vote. Brexit blends "British" and "exit."
Hjelmgaard reported from Berlin