British Pound Falls on U. K. Election Projected Results -
By PRASHANT S. RAOJUNE 8, 2017
LONDON — The British pound fell sharply late on Thursday, hit hard by an exit poll showing
that Britain’s incumbent Conservative Party had unexpectedly lost its majority in Thursday’s election.
“Once again, it seems as if the British public has decided to surprise everyone.”
The outcome — if the exit poll results are confirmed — follow a referendum a year ago in which Britain voted to withdraw from the European Union.
“The exit poll has certainly produced a shock wave in markets, with disbelief
and then a swift drop in the pound,” said Chris Beauchamp, chief market analyst at IG Markets.
The exit poll showed that the Conservatives, led by Prime Minister Theresa May, would
remain the largest party in Parliament but had failed to retain an overall majority.
The publication of the exit poll at 10 p.m. local time, however, sent the British
currency sharply lower, and it fell as much as 1.7 percent to $1.2739.
Analysts warned in the run-up to the election that the pound would be particularly hit by such uncertainty, but polling during the campaign had suggested
that Conservatives would retain a majority in Parliament.