Pound starts to stabilise

The first results of the General Election are in and the pound has slightly rebounded following the early falls after the release of exit polls earlier this evening.

Labour have held their seats in Sunderland South and Newcastle Upon Tyne Central.

Investors are waiting for more results to come in. As a result the pound has regained ground compare to the US dollar and the euro.

The pound is still down nearly 1.3 per cent, but is slightly up to $1.2782 (from an initial drop to $1.2740) and €1.1402 (from an initial drop to €1.1371).

It is still too early to know how accurate exit poll results are, but rumours circulate that the Conservatives will be able to form a coalition with the Democratic Unionist Party (DUP) in Northern Ireland.

However, the DUP held eight seats in the last Parliament and it is predicted that the Tories need 12 additional seats to form a coalition.

Pound coins from Flickr via Wylio
© 2011 J D Mack, Flickr | CC-BY-ND | via Wylio

 

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