The British pound beat the peso in Argentina to a title, but it is one no one would want: the worst performing currency in the world.
The pound plunged 14% versus the U.S. dollar since the vote in the United Kingdom on June 23 to leave the European Union.
The pound is down 12% since the beginning of 2016 and is trading the lowest it has traded in 31 years.
Analysts expect the pound to fall even further from its current level to around $1.29. One French bank has a target for the medium term for the pound of $1.23.
George Soros said prior to the vote on Brexit that the pound might drop to lower than $1.15.
The pound has fallen because investors have become worried that the UK could drop into a recession because of huge political and economic uncertainly triggered by last month’s vote. Surveys that have been published since the vote June 23 suggest that consumer confident has all but collapsed.
The very cheap pound had become very good news for international tourists visiting the UK, but it is already making things much more expensive for Brits. Vacation prices and prices for gadgets are already seeing price increases.
The pound is worse thus far in 2016 than any other of the major currencies. The peso in Argentina is off 11.7% thus far in 2016 versus the U.S. dollar.
Argentina for years has been fighting deep economic problems. The second largest South American economy managed growth of only 0.5% during its first quarter in comparison with the same period one year ago.
The peso in Mexico is down 7% during 2016, while the rand in South Africa has dropped 5.7% and the yuan in China, which had its worst ever quarter versus the dollar, is down by 2.9%.
American tourists are flocking to the UK for summer vacations. Langham Hotel one of the UK’s luxury hotels in London costs £200 per night. That was over $450 prior to the Brexit votes, but is only $387 a night today.
The Queen’s residence Buckingham Palace is open during the summer to the public for tours. This makes for a perfect destination for tourists. A pair of tickets to visit Buckingham, its different state rooms, the Queen’s gallery and the royal mews costs £74. That price was $111 only two weeks ago, but is now $95.40.
Black cabs in London cost £20 for a trip through the city center. On June 23 that cost was $30, but is now just $25.75.