Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Minority Labour Government ‘Nightmare’ for Pound, Investec Says

April 19 (Bloomberg) -- A Labour Party government without a parliamentary majority would be a “nightmare scenario” for the pound, pushing it to its weakest level versus the dollar since March 2009 and close to parity with the euro, Investec Plc said.

Sterling may slip to $1.38 per dollar and trade one-for-one against the euro by the middle of the year if the May 6 vote produces “a minority Labour government,” Philip Shaw, chief economist at Investec in London, wrote in a note today. The country may face another election as soon as October under those conditions, he said.

Sterling slipped today as the Liberal Democrats overtook Gordon Brown’s ruling Labour party and opposition Conservatives in a YouGov poll for the Sun newspaper. The pound fell 0.7 percent to $1.5256 as of 2:30 p.m. in London, pushing its decline this year to 5.7 percent. It dropped 0.2 percent to 88.04 pence per euro.

Related News and Information:
Top Currency News: {TOP FRX <GO>}
U.K. Economic Releases: {ECO UK <GO>}
FX Portal: {FXIP <GO>}
Currency Forecasts: {FXFC <GO>}

To contact the reporter on this story: Lukanyo Mnyanda in London at lmnyanda@bloomberg.net

To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.