Sterling falls as Cameron announces EU referendum date

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The pound is on-track for its largest one-day fall following the backing by several large groups for a Brexit, as Prime Minister David Cameron unveiled the date of the vote.

At the weekend Cameron revealed the in-out referendum for the UK in the European Union will be held on June 23rd.

The price of sterling versus the dollar and euro dropped, while its value relative to the yen hit a two-year low. The pound dropped 1.6 per cent to $1.4 in early European trading, marking the lowest point this month. The early trading indicates it is likely to surpass its previous biggest one-day drop of a 1.66 per cent fall on 2 January last year.

The currency fluctuations came as prominent figures such as Boris Johnson and senior Cabinet ministers said they would back the campaign to leave the EU.

However, Cameron is expected to see a flood of support this week from senior business leaders backing his campaign to stay in the EU. Sky News reports that a letter from senior FTSE company executives will be released this week.

The letter is expected to say that leaving the EU would “would put the economy at risk” and would deter investment and put jobs at risk.

A poll from the Institute of Directors found that three in five business leaders plan to back a move to stay in the EU.