Pound dives by shock vote

AFP: The pound plunged 2% Friday as Prime Minister Theresa May lost her majority in Britain’s general election, fuelling political uncertainty just days before the start of Brexit talks.

The pound dived from $1.2959 to $1.2674 after it was confirmed the Conservatives had lost their majority.

Craig Erlam, London-based senior market analyst at OANDA, said: “A hung parliament is the worst outcome from a markets perspective as it creates another layer of uncertainty ahead of the Brexit negotiations and chips away at what is already a short timeline to secure a deal for Britain.”

The outcome will throw Britain once again into upheaval less than a year after the country’s decision to leave the EU, which led the pound to collapse about 15% against the dollar between June and October 2016.