British pound hits new 31-year low, falling below mark set after Brexit referendum

The British pound has tumbled to its lowest level in almost 31 years, amid economic and political uncertainty after the vote last week to leave the European Union.

At about 9.55am GMT (7.55pm AEST), sterling slumped to US$1.3222 - the lowest level since September 1985 - having rebounded slightly after a similar trough was struck on Friday.

Shares in banks, airlines and property companies also plunged on the London stock exchange, as investors singled out the three sectors as being the most vulnerable to Britain's decision to leave the EU.

EasyJet stock fell over 16 percent after the company issued a profit warning, while British Airways parent IAG's shares were down 9.4 percent in early trading.

Royal Bank of Scotland shares plunged more than 15 percent, Lloyds by 8.9 percent and Barclays by 10.2 percent.

Following Friday's selloff, "concerns about the banking sector continue to be a pressure point for investors," chief market analyst at CMC Markets UK Michael Hewson said. 

He noted that banking stocks in the eurozone also came under heavy selling pressure again, notably Deutsche Bank in Germany, as well as Italian and Spanish banks.

Among London property shares, Taylor Wimpey fell 12.4 percent.

The key FTSE-100 index was down 1.3 percent.

With AFP.