The pound posted a third week of declines spurred by the Brexit vote, winning itself the title of 2016’s worst performer among major currencies.
Sterling’s rally on Friday barely dented its 2.7 percent slide versus the dollar in the preceding four days. The U.K. currency this week overtook the Argentine peso as the biggest loser versus the dollar among 31 major peers in 2016 as investors continued to digest the fallout from the June 23 referendum decision to leave the European Union.
“Sterling’s going to fall considerably further as the effects of that uncertainty on investment and growth emerge from the gloom,” Kit Juckes, a macro-strategist at Societe Generale SA in London, wrote in a note to clients.
The pound rose 0.3 percent to $1.2941 at 4:55 p.m. in London, leaving it down 2.5 percent this week and more than 12 percent this year. It briefly erased its daily gain after a U.S. Labor Department report showed a bigger-than-estimated jump in June payrolls.