Sterling falls to eight week low as Brexit vote looms

The British pound fell to an eight-week low against the dollar on Monday amid trepidation ahead of a referendum that could push Britain out of the European Union.

Taoiseach Enda Kenny will take part in a panel discussion on the UK's Brexit vote in Belfast this afternoon.

At an address in Ulster University, Kenny will warn that Ireland’s economic stability and growth will be threatened should Britain decide to leave the European Union.

The Taoiseach will join British Prime Minister David Cameron in Manchester later this week to campaign for a 'Remain' vote.

The British pound, which lost 1.4 percent on Friday, its second biggest fall so far this year, shed another 0.2 per cent in early Asian trade to $1.4208. It fell to as low as $1.4159, its weakest since April 18th.

"The referendum is getting nearer and opinion polls are showing a very tight race," said Shin Kadota, chief FX strategist at Barclays.

Implied volatilities on sterling soared as market players felt the need for protection against the currency’s fall.

Three-month pound volatility shot up to 17.2 percent, its highest level since early 2009.

Opinion polls published during the weekend showed voters were still divided over whether to end Britain’s European Union membership.

The pound also hit a one-month low against the euro, which rose to as high as 79.355 pence. It last stood at 79.135.