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Pound falls as Scottish independence support rises

08 Sep 2014

The pound has fallen sharply as YouGov opinion polls have shown that 51% of respondents were in favour of Scottish independence.

Sterling dropped by almost 1.5 cents against the US dollar, reaching its lowest level since November 2013 at $1.618. The stock market has also reported weak early trading from companies with Scottish interests.

Government plans are thought to be going ahead to arrange an offer of more power to Scotland should they decide to remain in the union, in an effort to prevent any further loss before the referendum on 18 September.

Chancellor George Osborne has already described a ‘credible timetable and process’ for these devolved powers. But Alex Salmond, Scotland’s First Minister, described the package as ‘a last-minute measure because the yes campaign is winning on the ground’.

An analyst from Barclays banks said: ‘A vote for independence only marks the opening chapter in uncertainty over issues ranging from the timelines for political and economic independence’.