Pound Tumbles on Scots Poll as BOE Bets Pared, FTSE Drops
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The pound slid to the weakest level since November versus the dollar as opinion polls highlighted the risk Scotland will vote for independence next week, potentially splintering the U.K.’s 307-year-old union.
Britain’s currency dropped the most in more than a year against its U.S. counterpart and measures of price swings surged after a poll by YouGov Plc showed the Scottish independence campaign gained a lead for the first time this year. Shorter-maturity government bonds rallied on speculation a vote in favor of a breakup would compel the Bank of England to keep interest rates lower for longer. Financial companies with ties to Scotland helped drag U.K. stocks lower.