The British pound is sinking again as investors continue to digest the impact of the U.K.'s historic vote to leave the European Union. The pound sank more than 2% early Monday against the dollar before regaining some ground to trade near $1.34 as uncertainty swirls over the U.K. economy. Those levels are still above Friday's low of around $1.32, its weakest in decades, that it hit Friday as results from the U.K. referendum were coming in. The reaction from global stock markets, many of which had suffered heavy losses in the immediate aftermath of the vote, was less clear cut.
Major Asian markets closed the day a bit higher, after swinging throughout the day. British voters chose to leave the EU in a referendum on Thursday. The U.K.'s decision to become the first country to drop out of the 28-nation bloc rattled markets worldwide on Friday. Still, the vote has far-reaching economic and political implications. Several EU leaders called on the U.K. to start the withdrawal process as soon as possible, to limit the uncertainty. But the U.K. is likely to wait before triggering the process.
Prime Minister David Cameron quickly resigned, saying it would be up to the new leader to negotiate with the EU. But it will take months for the Conservative Party to elect a new leader. Meanwhile, the main opposition Labour Party also fell into chaos after the vote.
One of the biggest unknowns is whether the U.K.'s vote to leave the union will trigger demands to leave from other countries, setting off a wave of turmoil.
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