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UK tech reacts to pound’s biggest slump in eight years

Pound

Sterling has risen slightly after plummeting to an eight year low against the euro yesterday, amid growing uncertainty caused by the UK’s impending Brexit and unexpected strong growth in the eurozone economy.

The pound fell to 1.0865 against the euro – its lowest level since October 2009 – following a brief ‘flash-crash’ in October last year.

At the time of writing, the pound had recovered somewhat, rising by 0.36% to 1.0869 against the euro.

Nish Parekh, senior FX trader at Silicon Valley Bank, said sterling’s decline would have a negative impact on net importers, but added that “the UK tech scene stands to benefit from the interest in UK businesses that a lower pound generates”.

Despite Brexit, she went on to say that international investors were looking to the UK for value. “We are seeing companies realise longer than expected runways from investments received in foreign currencies, affording greater growth before the need to consider further funding rounds.”...

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