“BlackRock’s Cameron Watt told Reuters many investors who buy the currency now are likely speculating on being able to sell it later, which could create more selling pressure later this year,” reports Reuters.
Looking ahead, this Brexit vote could trigger another Scotland referendum on breaking away from the United Kingdom. A 2014 referendum on Scottish independence resulted in the country remaining with the U.K., but the results were largely contingent on E.U. membership.
“Watt said the markets’ fierce reaction came because investors piled into riskier financial assets and European currencies in the week leading up the British referendum,” according to Reuters.
For more information on Brexit, visit our Brexit category.
CurrencyShares British Pound Sterling Trust