Pound could tumble to levels last seen in 1985 if Britain leaves the EU

A British exit from the European Union would be so devastating for the pound that 29 out of 34 economists in a Bloomberg survey see it sinking to $1.35 or below within a week of a vote to leave – levels last seen in 1985. Twenty-three of the economists say sterling wouldn‟t recover from that rate within three months of the June 23 referendum. Seven see the UK currency falling below $1.20 immediately after a "Brexit" vote. And just one sees it above $1.40, which is stronger than the almost seven-year low reached Wednesday. The pound has already dropped more than two per cent versus each of its Group-of-10 peers in 2016 as an uneven economic recovery and waning prospects of an interest-rate increase add to concern the nation will quit the world‟s largest single market. The slide has accelerated since Prime Minister David Cameron announced the date of the vote on Saturday, and everyone from politicians to corporations are now setting out their views for and against Britain quitting. Bloomberg News Story