Sterling slumps as support grows for Scottish independence

A surprise lead for the Yes campaign in polling ahead of the Scottish independence referendum has spooked markets as the pound slumped to a 10-month low.

The 1% decline to just below 1.62 versus the US dollar adds to sharp losses seen last week after an earlier poll revealed gathering momentum for the independence campaign. Sterling had been at a six-year high above the 1.70 barrier as recently as the end of June.