Pound keeps going down as markets open in Asia

The pound has hit a new low as markets open in Asia and the Pacific region.

The prospect of a hung Parliament has unnerved several large Asian manufacturers and sent Sterling spiralling down by 1.7 per cent compared to pre-election levels.

Sterling now stands at $1.2713 against the US dollar – a new low for the night – and the Euro at €1.1365.

The poor performance of the Conservatives in the snap election will also affect the assets and equities markets, according to portfolio managers.

“Based on exit polls and early results, the Conservative party’s failure to secure an overall majority will be taken badly by the UK equity market,” Paul Markham, a portfolio manager at Newton Asset Management, told the Financial Times.

A weaker Tory majority, or no Tory majority at all, would further complicate Brexit negotiations, which makes currency traders even more wary of the prospects of Sterling.

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