BoE's Carney launches new £5 note as polls forecast sterling's post-Brexit future

Bank of England boss Mark Carney has today launched Britain's crisp new 'fiver' note against the backdrop of the country's looming Brexit vote, which may prove not to be sterling's finest hour if recent polls are anything to go by.

The new polymer five-pound note, which features a rendering of Sir Winston Churchill minus his iconic cigar and set in front of the Houses of Parliament at Westminster, is hard-wearing.

Apparently it can withstand a splash of Claret, a flick of cigar ash and the nip of a bulldog, and even a cycle in the washing machine, Carney is reported as saying at the note's formal launch bash.

The new fiver's launch at Blenheim Palace, the birthplace and ancestral home of the late wartime leader, comes amid a torrid week for sterling.

Today, a new poll by Reuters predicted the British unit could sink 9% against the US dollar in the immediate wake of a UK vote on 23 June to leave the European Union.

The poll, of 30 currency forecasts conducted by the news agency, also found that sterling could rise 4% if UK stayed in the single-currency bloc.

Back in April, a similar Reuters poll found sterling would gain 4% on a Bremain vote, but fall 7% in the event of a Brexit return.

At 14:29 BST, sterling was up 0.15% at $1.4438. The dollar-index spot price was down 0.03% to $95.423.

A YouGov poll for the Times on Wednesday showed parity between the Brexit and Bremain camps, each on 41%, and a day earlier an ICM/Guardian poll revealed 45%-42% split favouring Brexit.

Irish bookmaker Paddy Power slashed its odds on Britain voting to leave the EU, from 9/2 to 5/2 on Wednesday, with the remain vote still solid at 2/7.

This confluence saw sterling drop yesterday against most major crosses, a shift away from its run-up prior to this week, which was premised on polls that suggested Britain was more likely to vote to remain in the EU.

Organisation for Economic Co-operation and Development fanned the flames yesterday when it warned UK's economy would be subjected to severe shocks if it left the EU, with gross domestic product projected to be 3% lower in 2020 than if it remained.