Pound at 7-year low over Brexit fears

The pound plunged to the lowest level in almost nine years on Monday in light of the growing uncertainty over Britain's future in the European Union.

According to Press TV, the pound fell 2.1 percent to $1.4106 — after touching a seven-year low of 1.4058 — and also sagged 0.5 percent to €1.28 in Monday’s trading.

This came after Prime Minister David Cameron tried to shore up support in the parliament for remaining in the bloc when the UK holds a referendum in June.

British Prime Minister David Cameron late Friday struck a reform deal brokered by the Commission at a European Union summit that gave the country "special status" in the 28-nation bloc.

The agreement reached after two days of intense negotiations, paves the way for the UK's EU referendum, expected to be held in June, and guarantees that Britain will never be forced to bail out members of the eurozone.

The deal also gives Britain the right to supervise financial institutions and markets to preserve financial stability.

Cameron said Saturday Britain would vote on whether to remain in the EU on June 23.

The British prime minister further emphasized that his cabinet had agreed to recommend the UK stay in a reformed EU.

However, his governing Conservative Party is deeply split on the issue, with as many as half of Tory legislators — and at least six of the 23 members of Cameron's Cabinet — in favor of leaving the EU.

Opinion polls show that a significant number of Britons have yet to make up their mind, though perceptions that the EU has failed to deal with the migrant crisis may be turning some towards a 'Brexit'.

ME