The pound plunged to a fresh low on the day it fell to its weakest level against the US dollar in more than three decades.
The value of sterling dropped below $1.31 for the first time since 1985 as it also plunged further against the euro as market jitters continue in the wake of the Brexit vote
Earlier today, the pound dropped to a two and a half year low against the Euro at €1.1703.
But despite its plummeting performance, Bank of England governor Mark Carney said the markets are functioning ‘pretty well’ and that the pound’s dip in value was necessary to allow economic adjustment.
The FTSE 100 rallied after new measures were announced to ease economic pressure following the historic decision for Britain to leave the EU.
The Bank of England said it would boost lending by up to £150 billion to support the markets.
The index closed 23.11 points up to 6,545.37 following Mr Carney’s intervention but struggled to lift further amid looming uncertainty over the property sector.
Aviva and M&G Property Portfolio suspended trading in its property funds following on from Standard Life Investments which made the same move on Monday.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said today the "dominoes are starting to fall" in the UK commercial property market.
He added: "It's probably only a matter of time before we see other funds follow suit.
"The problem these funds face is that it takes time to sell commercial property to meet withdrawals, and the cash buffers built up by the managers have been eroded by investors heading for the door, both in the run-up to the EU referendum, and in the aftermath."
Additional reporting by Press Association
