Aussie dollar strikes three-year high against the British pound

Sterling’s ‘flash crash’ has pushed the unit to a three-year low against the Aussie dollar.

The pound was most recently down 1.7 per cent against global reserve currency the US dollar. Picture: AFP.

The Australian dollar has struck a three-year high against Britain’s pound after a flash crash briefly wiped around 6 per cent from the latter’s value.

The pound has been one of the worst performed currencies this year after an intense sell-off followed the unexpectedly successful vote to exit the European Union on June 24.

It has faced pressure ever since, with fears swelling recently amid talk the Brexit process could start as early as next year and as traders grow increasingly confident in the prospect of imminent US rate hikes.

The pressure culminated in a sudden 6 per cent plunge around 10am (AEDT) this morning, with talk news algorithms overreacted to a Financial Times report on growing Brexit risks that came as France’s Francois Hollande demanded tough negotiations.

The pound was most recently down 1.7 per cent against global reserve currency the US dollar at $US1.2388, after very briefly falling to a 31-year trough of $US1.1841.

Australia’s currency also saw a heavy bid against its UK counterpart, recently trading at a three-year peak of 61.03 pence, up 1.6 per cent on the day.

It topped out at 62.88 pence through the ‘flash crash’ event.