HONG KONG — The beleaguered British pound plummeted briefly to a fresh 31-year low Friday amid intensifying concerns about Britain's exit from the European Union.
The pound tumbled nearly 6
The British currency, which had been trading at around $1.26 the day before, recovered minutes later. It was recently trading around $1.24.
Market watchers were baffled by the pound's "flash crash," which they blamed on various factors including a trader's "fat finger" mistake, a rogue automated trading algorithm making decisions based on news
Some speculated it could even have been a combination of those reasons.
"A deluge of negative Brexit headlines could have led to an algo taking that as a major sell signal," Kathleen Brooks, research director at Forex.com and City Index, said in a commentary. "Once the pound started moving lower then more technical algos could have followed suit, compounding the short, sharp, selling pressure."
The pound has now lost about 17