Pound falls after Scottish Independence leads in latest poll

Amongst the uncertainty about the UK’s future with Scotland, the pound has fallen to its lowest level in 10 months.

This fall comes after a YouGov poll suggested supporters of an independent Scotland has taken a narrow lead in the referendum debate. The poll released in the Sunday Times stated 51% of voters would back Scotland’s exit from the UK. This is a complete reversal after last month the Better Together campaign held a 22-point lead.

Scottish-based firms saw falls in shares, with Royal Bank of Scotland, Lloyds Banking Group and Standard Life dominating the top fallers on the stock market.

Experts have been quoted saying this latest poll will be a wake-up call for investors who have not yet considered the risk of a vote in favour of Scottish independence.

It is clear the pound is vulnerable amid ongoing uncertainty surrounding the referendum’s outcome. This uncertainty extends to what currency arrangements an independent Scotland would adopt. Politicians in Westminster have suggested a formal currency union would not be possible.

Many are said to believe that the vote for independence is just the ‘the opening chapter’, with other issues such as political timelines and economic independence, institutional frameworks, division of assets and liabilities, fiscal impact and policies remaining unresolved.

Already concerns over the impact Scottish independence are being discussed; it is expected the longer the uncertainties are left, the greater the harm will be to both sides of the border.