Asset allocators back sterling to 'easily recover' despite Brexit fears

Pound has 'robust qualities'

A number of investors are looking to boost exposure to battered sterling on the view the decline seen since the Brexit vote has been "overdone", as some predict the currency could rebound by up to 20%, wiping out the past year's losses.

The pound had a turbulent 2016, falling 16.8% against the US dollar throughout the year, as investors fled on concerns surrounding the implications of the UK leaving the European Union. However, UK Prime Minister Theresa May gave some welcome clarity in a speech in late January about the government's intentions to negotiate its EU exit, halting sterling's decline; the currency has gained almost 1% year-to-date (to 15 February). Managers reveal strategies to curb impact of 'oversold' sterling Many investors have benefitted from sterling's fall having been exposed to FTSE heavyweight...