Singdollar nearing 3-year high vs UK's pound as Brexit concerns mount

Recent opinion polls show exit supporters keep an edge over the other camp as the vote is just a week away.

The Singapore dollar is back near the three-year high it tested against the British currency in April as increasing popularity for the UK's leaving from the European Union has pushed the pound down across the board.

The Japanese yen has already touched a fresh three-year high against the Sterling even as the broad strength in the dollar on Brexit concerns has dragged most of emerging market currencies in Asia lower.

GBP/SGD dropped to 1.9148 on Monday, translating to a 1% gain for the Singdollar on the day, and getting closer to 1.8968, the three-year high for the local unit touched two months ago.

GBP/JPY plunged to 149.47 on Monday, its lowest since August 2013. The yen has rallied about 9% since 31 May against the UK currency.

The City dollar has been on the rise against the pound since end of last month and has rallied more than 5.5% by the low touched this week.

The Britons are going to vote on a referendum on the 'Brexit' on 23 June and the recent opinion polls by various agencies show that those who support the exit are ahead of those who want to keep the membership.

A poll done for the Telegraph showed that the Brexit campaign, led by Boris Johnson and Michael Gove, is on 49% of the vote compared to Remain's 48% amongst those definite to vote, the paper has reported.

In fact, the exit camp has been ahead for the past few weeks, but now that the vote has just a week to wait, the advance is more likely to lead to victory in the actual vote, analysts said.

Among Asian currencies, the slide of the Malaysian ringgit is more watched as the drop in oil prices too has weighed on it. The Malaysian unit was down more than 1% on the day at 4.1102/US dollar, the weakest point hit on Monday.

Crude oil has slipped from near the multi-month highs fetched in the past week pressured by a strong dollar.

The most traded Brent futures has dropped more than 5% over the past three sessions and traded at a low of $49.50/bbl on Monday compared to the 9 June high of $52.86, which was its highest since October last year.