UK pound plunges over ‘hard Brexit’ fears

By Michael Sercan Daventry

LONDON (AA) - Britain’s currency tumbled to its lowest level in 31 years Friday with investors fearing a “hard Brexit” from the EU.

The pound plunged by 6.1 percent against the U.S. dollar in the space of two minutes as trading opened in Asia, dropping to $1.1841, its lowest level since 1985, before recovering to around $1.24.

It was the pound’s largest daily fall since June 24, the day after Britain voted to leave the EU.

Observers noted the fall may have been by driven by computer-initiated sell orders after French President Francois Hollande said the EU would need to be firm with the U.K. on its exit from Europe.

Prime Minister Theresa May has also opted for a tough exit early next year that will take the country out of the European single market as well as the EU.