Oops! British Pound Sinks as London Mayor Backs Brexit

Britain's currency slid against the dollar on Monday after Mayor of London Boris Johnson announced his pro-Brexit position on Sunday.

MOSCOW (Sputnik) — The pound sterling fell over two percent against the dollar early morning on Monday, reaching nearly 1.4 pound per dollar by 12:40 GMT, down from late Sunday's mark of nearly 1.43 pounds per dollar. The pound also depreciated against the euro, falling over 1.3 percent early on Monday.

The markets' reaction comes a day after Mayor of London Boris Johnson said he would advocate the United Kingdom’s exit from the European Union, challenging Prime Minister David Cameron, who attempted to persuade him to back an "in" vote.

On Saturday, British Prime Minister David Cameron scheduled Britain's EU membership referendum for June 23, following securing an EU reform deal at the EU summit in Brussels.

While still remaining above January levels, the pound's depreciation continues the currency's downward trend that began in late 2015. Since December 11, the pound lost over seven percent against the dollar, hitting lows unseen since May 2010. Against the euro, Britain's currency fell nearly 10 percent since November 20, reaching the lowest rate since early 2015.