Recent Polls Cause Biggest Daily Increase in British Pound to Dollar Rate in Years

Reassessments on the likelihood of the United Kingdom leaving the European Union has caused a spike in the pound against the dollar. On Monday, the pound was valued at $1.4693—a rise of more than 3 cents—marking the largest one-day gain since 2009.

Although the race is close, the jump comes after recent polls suggesting that the UK will remain in the European Union. Financial markets have shown to be more comfortable with the UK remaining in the EU, with the currency appreciating as the polls for the UK to stay increase and depreciation as polls to leave increase. With voting opening tomorrow and results being released on Friday morning, there will be more fluctuations as the week goes on. The two sides have been fairly evenly matched, with no outstanding evidence that a certain side will prevail. 

The decision to stay or go will not bring with it much safety as far as currency. Both decisions will likely require some amounts of damage control, especially if the UK decides to part ways with the EU. Expect significant fluctuation, but an eventual plateau if they go, and a quicker plateau, even an increase, if they stay.