Risk of hung parliament drives down sterling

The pound was hit in early trading on suggestions the UK election could result in a hung parliament.

Research by YouGov indicated that Prime Minister Theresa May could lose her parliamentary majority at the general election next week, causing sterling to drop 0.6 per cent against the dollar during Asian trading hours.

Shortly before 9am the pound was down 0.3 per cent against the dollar at $1.28 and down 0.3 per cent against the euro at €1.15.

The Conservatives currently have 17 seats with previous polls suggesting they would increase their majority. However the YouGov poll points towards the party losing 20 seats in the election with Labour adding 30 seats, leaving no clear majority.