Sterling plunges as exit poll suggests British hung parliament

Sterling plunges as exit poll suggests British hung parliament

The pound plunged following a shock exit poll that indicated that the Conservatives have fallen short of an overall majority, resulting in a prospective hung parliament.

Sterling fell over 1.5% to 1.27 US dollars following the poll, which shows the Conservatives are set to be the largest party but 12 short of the 326 required for a parliamentary majority.

Against the euro, the pound plummeted over 1% to 1.13 euros.

If the poll is proved correct, a resurgent Labour will end up with 266 seats, the Liberal Democrats with 14 and the SNP on 34.

James Knightley, senior economist at ING, said: "Given Labour's left wing tax and spend manifesto and desire to nationalise the utility, rail and mail industries, markets are not going to react well if this is the outcome.

"The fear of higher deficits and national debt is leading to a spike in government bond yields.

"Meanwhile the greater chance of a Scottish Independence referendum in the next couple of years (Labour may have to offer this to get the support of the SNP) will intensify political uncertainty and it is already weighing heavily on the pound."

More on this topic

Boris Johnson takes reporter’s phone after refusing to look at photoBoris Johnson takes reporter’s phone after refusing to look at photo

Johnson and Corbyn trade accusations over racism and anti-SemitismJohnson and Corbyn trade accusations over racism and anti-Semitism

British police ’formally considering’ allegations Tories broke law due to call centre use British police ’formally considering’ allegations Tories broke law due to call centre use

UK government's 'shabby deal' with DUP branded a threat to Good Friday AgreementUK government's 'shabby deal' with DUP branded a threat to Good Friday Agreement

More in this Section

Uber launches appeal against London licence refusalUber launches appeal against London licence refusal

Donald Trump announces trade deal to halt new China tariffsDonald Trump announces trade deal to halt new China tariffs

Andrew Lloyd Webber wins tax fight over Barbados villasAndrew Lloyd Webber wins tax fight over Barbados villas

Economy grows 1.7% in third quarter of 2019; GDP up 5% in last 12 monthsEconomy grows 1.7% in third quarter of 2019; GDP up 5% in last 12 months


Lifestyle

Who hasn’t dreamt of cutting ties with the nine-to-five and living off-the-grid?The great escape: What's life like off the grid?

Jazz in Europe these days exists in a highly networked environment of cultural and political bodies, festivals, promoters, musicians and educators.Jazz Connective Festival: Intriguing, exciting and uncompromising

It will be bittersweet for Stormzy that his second album arrives the day the British Labour party was confirmed as suffering a historic general election trouncing.Album review: Stormzy remains a work in progress

Unique drawings by Quentin Blake, one of Britain’s best-loved illustrators, are available at a Christie’s online auction which runs until December 17.Your chance to buy drawings by Roald Dahl illustrator Quentin Blake

More From The Irish Examiner