European stocks extended their losses on Monday with the British pound falling to its lowest level in almost 31 years in the wake of the economic and political uncertainty following the UK’s historic vote to leave the European Union. The sterling dropped more than 3 percent to $1.32 against the US dollar as of 11:30 GMT – the lowest level since September 1985. The euro is also under pressure, down almost one percent against the greenback.

“We are still looking for another 10 percent fall for the pound against the dollar in the coming months as data confirms the economic slowdown and monetary policy expectations increase,” said Jeremy Cook, chief economist at World First, as cited by the BBC. Banking, airline and property shares plunged Monday on the London Stock Exchange. READ MORE