Currency exchange 'unlikely to be affected by hung parliament'

Currency exchange markets and the value of the pound will level out despite fears over a hung parliament, economic analysts have suggested,

The past week saw the pound dip against the other major currencies as a television debate between the three main political leaders in the UK resulted in even more varied election polls.

Prior to the debate, the race for parliament was between the Conservatives and Labour.

However, Nick Clegg's performance at the debate saw a more level spread between voting intentions, suggesting a hung parliament result is likely on May 6th.

Fears of this result had previously held sterling down on the currency exchange markets.

However, Daragh Maher, deputy head of foreign exchange strategy at Credit Agricole, told Reuters: "Sterling is vulnerable to wobbles on news ahead of the election, but barring a catastrophe, sterling would represent a good buy after the vote."

He added: "It would be wrong and simplistic to get hung up on a hung parliament."

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Posted by Eleanor Ward