As a result of last Thursday’s “Brexit” referendum, the British pound suffered two days of intense devaluation, and although it has steadied in the last 24 hours, this week’s chart shows that this has been the sharpest 2-day fall since the era of free-floating currencies began in 1971.
Chart of the Week: Week 33, 2015: Chinese Exchange Rate
Over the last couple of weeks, there has been a lot of coverage of the devaluation of the Chinese currency.
Chart of the Week: Week 40, 2014: Effective Exchange Rate
The decade leading up to the 2008 financial crisis was characterised by a very high real effective exchange rate, but also a period of serious decline for the UK manufacturing sector.
Chart of the Week: Week 37, 2014: Sterling Exchange Rate
With the Scottish independence referendum due to take place next week, a poll released a few days ago suggesting that the “Yes” vote might actually win sparked panic, causing a fall in the value of the pound.