#UK #Pound falls after a series of political heavyweights throw their weight behind #Brexit

#London:  #UK  The pound has fallen sharply after a series of political heavyweights threw their weight behind a UK exit from the European Union.

Sterling dropped by two cents to a three-week low against the US dollar.

It was also down against the euro and hit a two-year low against the yen after London mayor Boris Johnson and a number of Cabinet ministers said they wanted to leave.

A weaker pound makes holidays more expensive for UK tourists but helps British exporters because it makes their goods cheaper in foreign markets.

The fall in the pound came after an EU reform deal reached by Prime Minister David Cameron ahead of an in-out referendum on June 23 that failed to satisfy his eurosceptic critics.

However, Mr David Cameron looks set to win the backing of dozens of FTSE 100 listed companies which are preparing to issue a warning on the threat to investment and jobs should the UK leave Europe.

Bosses of as many as half the companies in London’s leading share index are this week likely to put their names to a letter warning that a Brexit “would put the economy at risk”.

The text of the letter is understood to have been agreed with Downing Street.

Meanwhile a snap poll for the Institute of Directors revealed that six in ten business leaders plan to vote to remain in the EU following the agreement reached by Mr Cameron in Brussels on Friday.

Company directors believed the Prime Minister had secured a “reasonable deal” – with measures to reduce red tape, confirm that Britain would not be pulled into an “ever closer union” and protect the UK’s financial services industry – the IoD said.

IoD director general Simon Walker said business leaders had concerns about the way the EU operates but this was balanced against the ability to trade easily across the single market.

He added a worrying finding of the poll was that four in ten firms had not discussed the referendum in the boardroom.
Mr Simon Walker said: “Now that a date has been set, all firms should consider what the potential outcomes would mean for them.

“There are many entrenched opinions on EU membership.

“Amidst all the rhetoric and campaigning, it is vital that people appreciate the consequences for jobs, prices and economic growth.

“They need to hear what companies think.

“Business leaders will take different positions, but they should not be afraid to stand up.
“This referendum is a momentous political choice.
“Let us make sure it is a well-informed one.” By Agencies.