New Strain of Coronavirus Putting Pressure on Pound

The British pound and the euro fell on Monday, as investors searched for a safe haven in the dollar after a new fast-spreading strain of the Coronavirus caused the closure of most parts of Britain and disrupted international shipping activity in light of the fog surrounding Brexit from the European Union.

The pound retreated by about 2% against the dollar in morning trading before Prime Minister Boris Johnson presided over an emergency meeting to discuss international travel and the flow of shipping to and from Britain.

The British pound was down 1.85% at $ 1.3277.

The Euro also incurred losses against the dollar, down 0.74% to $1.2169, but it rose 1.26% against the pound to 0.9170.

The dollar rose against the major currencies today, as investors seek the relative safety it provides, at a time when many countries tighten closures related to Covid-19.

The Australian dollar fell 1.24% to 75.295 US cents.