Sterling falls over British EU exit fears

LONDON

Britain’s pound plunged by 1.7 percent against the US dollar early Monday following the announcement of a date for the country’s in-out EU referendum.

Sterling fell to $1.4166 on the first day of trading since Prime Minister David Cameron said the vote on Britain’s continued EU membership would be held on June 23.

Analysts said investors were worried about the referendum. Over the weekend, Boris Johnson, the mayor of London and a high-profile member of Cameron’s Conservative Party, said he would campaign for the U.K. to leave the EU.

“The fact that prominent members of the Conservative Party announced they will campaign for Britain to leave the EU likely underscored investors’ concerns that Brexit risks could increase from here despite the deal,” Valentin Marinov, a currency strategist at French investment bank Credit Agricole, told The Guardian newspaper.

On Friday, Cameron and European leaders agreed to EU reforms including welfare payments for migrants and protection for countries that do not use the euro currency.