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| Sterling falls to new low against the dollar in Asia trade | Sterling falls to new low against the dollar in Asia trade |
| (about 1 hour later) | |
| The pound has hit a new low in Asian trading as concerns about the UK's vote to leave the European Union continue to weigh on investor confidence. | The pound has hit a new low in Asian trading as concerns about the UK's vote to leave the European Union continue to weigh on investor confidence. |
| It touched $1.2798 against the dollar on Wednesday, a fresh 31-year low. | |
| The drop came as US government bond yields fell to record lows as investors rushed for perceived safe havens. | The drop came as US government bond yields fell to record lows as investors rushed for perceived safe havens. |
| The moves follow decisions by fund managers, including Standard Life and Aviva, to stop investors withdrawing money from their UK property funds. | The moves follow decisions by fund managers, including Standard Life and Aviva, to stop investors withdrawing money from their UK property funds. |
| They said the high levels of uncertainty caused by the referendum had led to investors rushing to pull their money out. | They said the high levels of uncertainty caused by the referendum had led to investors rushing to pull their money out. |
| Yields on Australian and Japanese government bonds also hit record lows as the flight to so-called safe havens, or investments that are perceived as less risky, continues. | Yields on Australian and Japanese government bonds also hit record lows as the flight to so-called safe havens, or investments that are perceived as less risky, continues. |
| Bank of England warning | Bank of England warning |
| There's been a rush to buy up certain government debt, which saw the yields on the 10-year US, UK and German bonds at or near their lowest on record. | There's been a rush to buy up certain government debt, which saw the yields on the 10-year US, UK and German bonds at or near their lowest on record. |
| Jitters also sent yields on almost all bonds issued by the Swiss government negative, meaning the return is less than zero. | Jitters also sent yields on almost all bonds issued by the Swiss government negative, meaning the return is less than zero. |
| High demand tends to push up bond prices, and when the price of bonds rises their yield falls. | High demand tends to push up bond prices, and when the price of bonds rises their yield falls. |
| Investor confidence was undermined by the Bank of England's warning that there was evidence that some of the risks it identified related to Brexit were already emerging. | |
| Disappointing data on the UK services sector and a decline in US factory orders also weighed. | Disappointing data on the UK services sector and a decline in US factory orders also weighed. |
| Meanwhile, Asian stock markets are mostly lower due to the renewed Brexit concerns. | |
| Japan's benchmark Nikkei 225 and the broader Topix both shed 2% as the yen, another safe haven investment, strengthened against the US dollar. | Japan's benchmark Nikkei 225 and the broader Topix both shed 2% as the yen, another safe haven investment, strengthened against the US dollar. |
| Indonesia, India, Singapore, Malaysia and the Philippines stock markets are closed for holidays. | Indonesia, India, Singapore, Malaysia and the Philippines stock markets are closed for holidays. |