Currency insurance costs soar on Brexit threat

Sterling headed for its biggest loss against the dollar in almost six years yesterday, hit by a fall in the odds on a ‘Brexit’ after several senior Conservatives joined the campaign to leave the EU.

The scale of the reaction on sterling, a 2% fall to a seven-year low against the dollar, driven chiefly by the defection of London mayor Boris Johnson to the ‘out’ camp over the weekend, also sent UK government bond prices lower.

Sterling hit a seven-year low of $1.4057 and fell 1.5% against the euro to 78.03 pence.