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Brit pound's 'flash crash' baffles traders

Market watchers are scratching their heads over a "flash crash" which saw the British currency tumble nearly 6 per cent in early Asian trading.

1 min read

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Source: AAP


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The beleaguered British pound has plummeted briefly to a fresh 31-year low amid intensifying concerns about Britain's exit from the European Union.

The pound tumbled nearly 6 per cent in early Asian trading on Friday, falling as low as $US1.1789, according to FactSet data.

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.''

Some attributed it to a trader's "fat finger'' mistake or a rogue automated trading algorithm.

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Others said the trigger might have been comments to British media by France's president, who insisted the European Union must take a tough stance in negotiating Britain's exit from the bloc's tariff-free single market.


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