MAIL ONLINE: The pound slumped to a nine-month low against the dollar today as fears over a hung Parliament sparked a sterling sell-off.
The currency fell sharply to as low as 1.478 against the dollar, as well as dropping below 1.10 against the euro.
Pressure on the pound comes as the Conservative lead against Labour in the polls narrows - threatening an indecisive General Election result at the same time markets want firm action to sort out the UK's dire public finances.
Mark O'Sullivan, director of dealing at foreign exchange firm Currencies Direct, said: 'Until the political situation in the UK becomes clearer, sterling will remain very, very vulnerable.'
The sudden drop from 1.52 to below 1.48 is the pound's biggest one-day fall since January last year, according to Chris Turner, head of FX Strategy at ING Commercial Banking.
He warned: 'While UK policymakers may have quietly welcomed the pound's recent weakness, they will not appreciate the kind of fast markets that can see a "sell UK" mentality developing.'
Sterling has lost nearly 10 cents against the dollar in little more than a week - hitting holidaymakers in the pocket, increasing pressure on petrol pump prices and adding to import costs for businesses. Read on and comment >>> | Monday, March 01, 2010
