LONDON: Sterling fell by around a third of a percent on Thursday as the tightly-fought campaign on Britain's referendum on EU membership entered its final week and the latest polling showed the "Leave" camp in front.
An IPSOS-MORI poll for London's Evening Standard newspaper showed 53 percent would vote to leave next Thursday and bookmakers now put the odds of a decision that would send a shockwave through global financial markets at almost 40 percent.
The pound, which gained ground for the first time in more than a week on Wednesday after a poll gave the "Remain" camp a marginal lead, dipped 0.3 percent to $1.4147 and 0.4 percent to 79.55 pence per euro.
"EU referendum polls are still swinging in favour of a Brexit and there is plenty of fear out there about what may happen next week," said Tobias Davis, head of corporate treasury sales at Western Union in London.
Traders were also waiting retail sales data (0830 GMT) and a Bank of England policy statement due at noon in London (1100 GMT). Another poll from Survation is also expected around that time.
The outlook for growth, inflation and interest rates is clouded by the chances of a vote to leave the 28-country trading bloc in next week's vote, which analysts worry could knock anything between 10 and 25 percent off the value of the pound.
The BoE's statement and minutes will be studied for any signs of how it is preparing for what bankers expect to be the most volatile day in London trading since the 2008 financial crisis.
Analysts from U.S. bank Goldman Sachs said in a note overnight they expected the pound to fall 11 percent in trade-weighted terms if Britain voted to leave.
"When it comes to the BoE there is limited scope of a surprise one week ahead of the referendum," Credit Agricole strategist Manuel Oliveri said.
"If anything, the central bank should reiterate its readiness to act in the case of any negative developments (after the vote)."
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