Foreign exchange swaps are one of the few ways of diversifying your portfolio and hedging against swings in the currency markets.
But the UK voted to leave the European Union in a referendum on June 23.
Many foreign exchange traders have feared that the UK would lose access to the US dollar if it leaves the EU, which would lead to a fall in the value of their assets.
The trade in British currency swaps has been on a slide since June 30.
The benchmark exchange rate for the GBP, the main currency used in the UK, fell from 0.9950 to 0.978 in the space of two hours.
It’s the first time in six months that the GBPs exchange rate has fallen, according to the ONS.
There have also been falls in other currencies, with the pound falling to $1.2727 against the dollar and the euro to $2.16.
The pound fell to $0.9237, the euro fell to €0.8870 and the dollar rose to $US0.9979.
“It’s not good news, but it is better news,” said Simon Goulston, chief currency strategist at IHS Global Insight.
In the wake of the Brexit, the pound has slumped to as low as $0,547.47.
Goulston said he expects the pound to fall again by a further 0.5 per cent to $NZ0.9499 by the end of the year.
The price of the US currency has also fallen.
The Dow Jones Industrial Average is down more than 6 per cent in the last three months.
Its market cap is around $18.3 trillion.
But for now, there’s no sign that the British currency is likely to weaken, as there’s a big rally in gold and silver.
Gold is up about 15 per cent this year and silver is up more than 30 per cent, according a Bloomberg report.
Silver prices are still relatively low compared to gold, but gold has been rising for months.
It’s a sign that gold is a safe haven for many of the world’s precious metals investors, which is good news for gold miners, as they’re looking for opportunities.
As for gold, it has lost about a quarter of its value in the past year.