The pound has fallen to fresh lows after polls showed support for the Leave campaign was growing ahead of the EU referendum.

Polling firm TNS said on Monday that the Leave campaign had a 2-point lead over the Remain campaign.

YouGov polling showed that the Leave campaign was up 4 points.

Sterling fell 1 per cent against the dollar to hit a three-week low on June 6.

Against the dollar, sterling fell to $1.4370, recovering slightly from lows of 1.4352 in early trading in Asia, its lowest in three weeks.

Source: Bloomberg (Bloomberg)

The euro was 0.75 percent higher at 78.95 pence.

Currency traders are expecting a rocky month for the pound.

One-month sterling volatility, which gives a measure of how much the pound will swing during the referendum date, jumped to 21.9, the highest since the depths of the financial crisis in February 2009.

EU Referendum: Latest Poll

YouGov asked people to judge whether they thought the UK should leave the EU if they were £100 a year worse off afterwards.

The majority (44 per cent) of people said they would vote to leave, while 42 per cent said they would remain.

Connor Campbell, Spreadex financial analyst, said that the pound was continuing to feel the ragged to-ing and fro-ing of the duelling EU referendum campaigns.

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"The most recent downward movement was sparked by a series of polls over the weekend that suggest the Brexiters have gained ground as immigration has come into focus, reintroducing a wave of uncertainty that appeared to have been put to bed in light of the 13-point lead Vote Remain had around a fortnight ago," he said.

The most scaremongering arguments for Brexit Show all 7 1 /7 The most scaremongering arguments for Brexit The most scaremongering arguments for Brexit 22 May 2015 In his regular column in The Express Nigel Farage utilised the concerns over Putin and the EU to deliver a tongue in cheek conclusion. “With friends like these, who needs enemies?” PA The most scaremongering arguments for Brexit 13 November 2015 UKIP MEP for Yorkshire and North Lincolnshire Mike Hookem, was one of several political figures who took no time to harness the toxic atmosphere just moments after Paris attacks to push an agenda. “Cameron says we’re safer in the EU. Well I’m in the centre of the EU and it doesn’t feel very safe.” Getty Images The most scaremongering arguments for Brexit 19 April 2016 In an article written for The Guardian, Michael Gove attempts to bolster his argument with a highly charged metaphor in which he likens UK remaining in the EU to a hostage situation. “We’re voting to be hostages locked in the back of the car and driven headlong towards deeper EU integration.” Rex The most scaremongering arguments for Brexit 26 April 2016 In a move that is hard to decipher, let alone understand, Mike Hookem stuck it to Obama re-tweeting a UKIP advertisement that utilises a quote from the film: ‘Love Actually’ to dishonour the US stance on the EU. “A friend who bullies us is no longer a friend” The most scaremongering arguments for Brexit 10 May 2016 During a speech in London former work and pensions secretary Ian Duncan Smith said that EU migration would cause an increasing divide between people who benefit from immigration and people who couldn’t not find work because of uncontrolled migration. “The European Union is a ‘force for social injustice’ which backs the ‘haves rather than the have-nots.” EPA The most scaremongering arguments for Brexit 15 May 2016 Cartoon character Boris Johnson made the news again over controversial comments that the EU had the same goal as Hitler in trying to create a political super state. “Napoleon, Hitler, various people tried this out, and it ends tragically.” “The EU is an attempt to do this by different methods.” PA The most scaremongering arguments for Brexit 16 May 2016 During a tour of the women’s clothing manufacturer David Nieper, Boris had ample time to cook up a new metaphor, arguably eclipsing Gove’s in which he compares the EU to ‘badly designed undergarments.’ “So I just say to all those who prophecy doom and gloom for the British Business, I say their pants are on fire. Let’s say knickers to the pessimists, knickers to all those who talk Britain down.” Getty Images

Currency traders are nervous about the EU referendum on June 23 because of its potential to hit the value of sterling.