Monday, 1 March 2010

Pound suffers sharpest fall in more than a year as prospect of hung parliament looms

"The pound fell the most in more than a year as foreign-exchange markets reacted with shock to the prospect that a hung parliament will fail to tackle Britain's deficit. ...In a dramatic morning's trading, sterling fell 4 1/2 cents against the dollar to trade below $1.48 for the first time since May. By lunchtime it had recovered some of its poise but was still down 3 1/2 cents at just over $1.49 and on course for its worst day since at least February 2009.The steep declines followed an opinion poll published in the Sunday Times showing that the Conservatives' lead has narrowed to just two percentage points over the Labour Party. Experts reckon if that voting pattern were replicated on polling day - widely expected to be May 6 - Labour would win enough seats to lead a hung parliament in which neither of the main parties has a majority. "

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