Pound hits 2-year high after Scotland votes ‘No’ on independence
City Index September 19, 2014 2:15 PM
<p>The pound rose to a two-year high against the euro and a two-week high against the dollar.</p>
The pound has enjoyed a surge against the euro as Scotland voted 'No' in the independence referendum.
The British currency hit a two-year high against the European currency while it also rose to a two-week high against the US dollar. In Asian trade, sterling increased 0.43 per cent to 1.2743 euros (£0.9985) while it grew 0.8 per cent to $1.6525 (£1.0038) before dropping back slightly. The FTSE 100 share index also rose by 0.7 per cent to 6,860 in early morning trading.
Scotland confirmed a 'No' vote in the early hours of Friday (September 19th) with over two million votes cast against becoming an independent nation. Only four councils voted in favour of independence giving the Better Together campaign an overall majority of 55 per cent, against the 45 per cent gained by the 'Yes' party.
While Scotland will not be breaking away from the UK there are set to be a number of changes implemented in the future. In the build-up to Thursday's (September 18th) referendum, prime minister David Cameron pledged for more devolved powers to be given to Scotland should voters choose 'No'.
The decision has had a positive effect on the banking sector with the Royal Bank of Scotland confirming that it would not be relocating to London after independence was rejected. The bank had warned that it would move south should the country vote 'Yes'. Lloyds Banking Group will also be staying in Scotland and maintained that it is committed to the country.
Brenda Kelly from IG Index said: "Investors in these firms will be relieved that management will be able to devote their time to business performance, rather than fretting about contract changes or headquarter moves.
"There is still uncertainty, primarily over the new changes to voting on English issues, but these are of importance primarily to politicians and less so to markets."
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