The pound fell the most in more than a year against the dollar on Monday while opinion polls underscored the potential for Scotland to vote for independence next week and end its 307-year-old union with the U.K., reports Bloomberg. After a weekend poll by YouGov Plc only 10 days before the vote showed an independent Scotland in the lead for the first time this year, British shares and government bonds pulled a cautious Europe down.
Neil Williams, chief economist at UK-based fund manager Hermes, said, "The pound is predictably taking a hit, my base case is still that there won't be a split but should there be a 'yes' vote the pound will look vulnerable because of the 12-18 months of uncertainty that would lie ahead," according to Reuters.
Britain's currency dropped to its lowest level against its U.S. counterpart since November, falling 1.3 percent to $1.6122 in London after dropping to $1.6103, its weakest level since Nov. 21 of this year. It was set for its biggest one-day decrease since July 4, 2013. Sterling slid 1.2 percent to 80.30 pence per euro and reached its lowest level since June 12 at 80.37 pence, reports Bloomberg.
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