Sterling has carved out a fresh 31-year trough while the safe-haven yen soared on heightening fears of the broader impact of Britain's vote last month to exit the European Union. Tara Joseph reports
Global markets taking a fresh Brexit pounding on Wednesday... Britain's currency falling to a 30 year low as investors get the familiar sinking feeling that economies around the world could be in for a rough time after Britain voted to leave the EU. Asian companies like Toyota that are major exporters to Europe- sliding in the gloom with Japan's benchmark Nikkei index falling more than 3 percent. (SOUNDBITE) (English) WAYNE COLE, REUTERS REPORTER IN AUSTRALIA, SAYING: "When we got in this morning, sterling has already fallen to a $1.39 and then I looked away and looked back and it was down another cent. It's not often you see markets move that quickly that fast, so it was scary for a while there this morning. It's really bad for the world economy at exactly the wrong moment. There's a sudden panic in the Italian banking system, which is totally under water with debt, and whether there's gonna be able to bail that out or not. And that's all added to sudden worries that this Brexit thing is never gonna go away." And it's not just Europe and Japan where the outlook is darkening. China's premier says it could be hard for the world's number 2 economy to hold onto economic growth projections , which are already below 7 percent... China's yuan currency is now hovering at 5 1/2 year lows. Investors have been expecting Central Banks to ease pain of Brexit by further lowering interest rates. But with rates in most countries near of already at historical lows authorities are running out of options. Now investors are searching for the safest place they can park their money - from US treasuries to gold. And even if Brexit fears fade from the daily headlines in the next few weeks - experts say volatile markets are sure to be re-ignited by worries over the future of the EU as a whole.