Sterling climbs despite second Scottish independence vote plans

The British pound rose on Monday despite an announcement from Scotland's First Minister outlining plans to hold a second independence referendum in light of Brexit.

Sterling climbed over 0.6% versus the euro to 1.147, and rose more than 0.5% against the US dollar to 1.222.

The currency rose even after Nicola Sturgeon said she would seek the approval of MSPs at Holyrood next week to start negotiations with the UK Government on a deal that would allow a legally binding ballot to be held.

The move could mean a second independence vote could take place as early as autumn 2018 - but the news did not surprise markets.

Jasper Lawler, a senior market analyst at London Capital Group, said: "The British pound was higher on the day since the announcement was well telegraphed by Scottish First Minister Nicola Sturgeon.

"The pound has already fallen sharply since the first rumblings of another referendum began two weeks ago."

He said future currency movements will depend on whether UK Prime Minister Theresa May decides to allow Ms Sturgeon to hold the vote.

However, "the critical language so far from the Government would suggest it won't grant the referendum," Mr Lawler added.

Email Updates

Receive our lunchtime briefing straight to your inbox

More in this Section

Driverless cars 'will be limited to avoid them making life and death decisions'

Twitter CEO: Fighting cyberbullying is a constant battle

€90m Cork office block gets go-ahead as objections withdrawn

ESRI: Govt tinkering with taxes 'caused even greater austerity' during economic crisis


Today's Stories

Organised crime gangs ‘flying in to steal iPhones’

Titanic Belfast profits up nearly 60%

Mercedes speeds up its rollout of electric vehicles

Brexit may see UK lose its EU air links, warns Ryanair

Lifestyle

Genesis of rivalry is still there says guitarist Steve Hackett

Are we still our authentic selves with filtered selfies?

The horrors of WWII through the eyes of an Irishman

Technology in school is about collaboration and ideas - not passively swiping at a screen

More From The Irish Examiner