LONDON: Sterling fell 1 percent against the dollar on Tuesday and extended losses against the euro, after opinion polls showed growing support for Britain leaving the European Union ahead of a referendum next week.
Betting markets have lowered the chances of the country remaining in the European Union, creating anxiety amongst investors. The implied probability of a vote to remain a member of the bloc fell to around 57 percent on Tuesday, down nearly 20 percentage points from last week, according to Betfair.
The YouGov poll for The Times put "Leave" on 46 percent support compared with 39 percent support for "Remain." Undecided voters made up 11 percent, while 4 percent said they would not vote.
Last Monday The Times/YouGov poll showed a 1 percent lead for the "Remain" campaign.
In another, boost for "Leave," media tycoon Rupert Murdoch's mass-circulation Sun newspaper called on its readers to vote to quit the 28-member EU.
Sterling fell 1 percent to as low as $1.4124, a shade above its eight-week low of $1.4117 struck on Monday, while the euro was up 0.5 percent at 79.96 pence while the pound was down 1.5 percent against the safe-haven yen at 149.22 yen its lowest level in nearly three years.
Traders said Brexit worries were likely to overshadow inflation data due out at 0830 GMT. Consumer prices inflation is expected to have edged up in May, but with investors worried growth will be hit if Britain leaves the EU, some economists say the Bank of England may lower rates in coming months.
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