FX.co ★ Pound becomes world’s worst performer

According to a Bloomberg survey of foreign exchange executives, the British pound won the title of 2016’s worst performer among 31 major currencies, overtaking the Argentinian peso and Russian ruble.

The pound has shown the weakest dynamic since the beginning of the year. It overtook the Argentinian peso and Russian ruble as the biggest losers against the US dollar. The Mexican peso, Polish zloty, Swedish krona, Chinese yuan, Indian rupee, and Turkish lira are also on the list of weak currencies as they turned in a lackluster performance. Most analysts suppose that the pound’s behavior was determined by both the Brexit vote and pre-referendum campaigns. The fact is that market participants were not sure of the referendum results, and this uncertainty weighed down on the UK’s currency. Consequently, the pound is at the bottom of the list.

At the same time, the Japanese yen stood out as the strongest performer against the greenback this year, according to the survey organized by Bloomberg. The Japanese currency posted the biggest rise surpassing the US dollar and other currencies.