sterling

PFS TwentyFour Dynamic Bond fund

Renewed dollar strength has led forecasters to predict a tougher time for sterling in the coming months, despite a small relief rally last week as Scotland opted against independence. Which funds could benefit?

The pound reached a two-year high against the euro overnight while yields on gilts and treasuries rose, as Scottish voters rejected independence from the UK and investors swapped safe havens for equities.

Artemis' William Littlewood does not expect the pound to suffer a sustained fall in the event of a ‘yes' vote in today's Scottish referendum, despite betting against the currency in his Strategic Assets fund.

The pound could dive a further 10% in as little as a week if a 'yes' vote on Scotland is approved, witnessing a sell-off reminiscent of sterling's fall on Black Wednesday more than 20 years ago, a manager has warned.

Sterling fell further this morning as political leaders headed to Scotland to encourage a 'no' vote.

Investors in all parts of the UK will face increased costs if Scotland votes for independence, Hargreaves Lansdown has warned.

Sterling tumbled in overnight trading and was poised for further losses today after the latest poll showed Scotland is on course for independence.

One of Europe's top officials has said Scotland will not be allowed to keep using the pound sterling and remain in the European Union in case of an independence vote.

CURRENCY