The sterling headed for its second weekly decline versus the dollar before the U.K. votes on June 23 on whether to remain in the EU. The currency tumbled as much as 1.1 percent on Monday after polls signaled a lead for voters who support leaving the 28-nation bloc. It climbed as much as 1.5 percent the following day amid speculation a mistyped transaction had triggered automatic orders to sell or buy currencies to avoid losses.
Implied volatility for one-month options on the pound versus the dollar rose to 23.5 percent, the highest since January 2009, and more than double the level at the end of April. Expectations for price swings have climbed every week since the period ended April 29, the longest winning streak since late February.
Sterling was little changed at $1.4451 at 12:31 p.m. in Tokyo, and has depreciated 0.5 percent this week. The currency gained 0.1 percent to 78.17 pence per euro from Thursday.
The pound has been a gauge of sentiment throughout the referendum debate. It slid to a seven-year low of $1.3836 in February, and remains the worst-performing developed-market currency this year.
Source : Bloomberg
