Sterling hits 2016 high as EU referendum day arrives

Up nearly 1% in overnight trading

Sterling reached a 2016 high against the dollar this morning as Britons vote on the UK's future in the European Union, despite the most recent polls showing the final result is still too close to call.

The pound soared 0.94% in overnight trading to $1.4844 - its highest level since 31 December when it hit $1.485. However, it then pared back gains slightly to $1.4809 as the morning progressed and voting got underway. Sterling has been particularly volatile during the lead-up to the EU referendum, culminating in the cost of hedging against swings in the currency over the next 24 hours surging to the highest on record overnight, according to Reuters.  Meanwhile, the VIX or 'fear' index, the closely-watched measure of expected US equity volatility, climbed on Wednesday to its highest le...