Invesco Perpetual's Mustoe: Sterling could fall further on Brexit fears

Pound has already fallen 10%

Invesco Perpetual CIO Nick Mustoe has warned there could be further currency volatility in the lead-up to the referendum on UK membership of the European Union, as investors flee British assets.

He said sterling has already fallen around 10% against the US dollar and euro since the autumn, with many blaming the falls on investors' nervousness surrounding interest rate rises. However, he said although interest rates have played a part, the fall can be largely attributable to Brexit concerns. "I think the currency move is the barometer for Brexit," the CIO (pictured) said. Should investors fear a Brexit from the EU? "We have certainly seen some foreign investors move away in terms of currency moves, even if UK equity markets have held up well compared to others in the past...