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Pound plunges as election uncertainty rattles financial markets

Financial markets are rattled as the election delivers political turmoil and potential disruption to Brexit negotiations.

The pound has plunged in value as financial markets digest the implications of a General Election result that has left the UK in political limbo.

Earlier on election day, sterling had hit a two-week high of $1.2978 after polls predicted a comfortable victory for the Prime Minister’s party.

But in the moments after the exit poll predicted the Conservatives would be the largest party, but with fewer MPs, the currency dived to around $1.2730 in Asian trading- its lowest point since the election was called in April.

It later hovered more than 2% lower as trading got into gear in London, at $1.2648, after a hung parliament became clear – leaving the currency on course for its biggest one day fall since October’s so-called flash crash.

The pound was also 2.3% down versus the euro.(SKYNEWS)

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