Poll sees pound plummet

LONDON: The pound suffered its biggest one-day slide in about three weeks on Friday after a new poll showed Labour had slashed the Conservatives’ lead to just five points before next month’s general election.

At the London stock market close on Friday, the pound was more than 1% lower against the dollar, at $1.2787, its lowest level since the end of last month. Sterling already slipped on Thursday after the Office for National Statistics revised down the UK’S growth in the first quarter to just 0.2%.

The currency had remained about 13% lower against the dollar since June’s Brexit referendum but had tentatively edged higher this year and rose sharply after the June 8 general election was announced on April 18, with investors hopeful a vote would strengthen Theresa May’s hand in the Brexit negotiations.

The latest poll indicates the outcome is less certain.

“With political uncertainty likely to heighten ahead of the UK general election on June 8, sterling could become even more attractive to bears,” said Lukman Otunuga, a research analyst at broker FXTM.

The poll indicates a fourpoint change since last week when the Tories were leading by nine percentage points – the first time Labour has narrowed the gap to single figures since the prime minister called the snap election. It follows May making a U-turn over her “dementia tax” plans, four days after making them the centre of her election manifesto.

Yesterday’s slump in the pound helped the FTSE 100 to a fresh all-time closing high of just under 7 550. – The Independent