//
Andrew Scott, currency dealer at HiFX - which dealt with over £20 billion of foreign exchange last year - thinks investors are viewing the pound more favourably as pressure on other currencies grows.
The last 100 days have seen the British currency rise seven per cent to 1.22 against the euro and eight per cent to 1.563 against the dollar, as well as hitting 19-month and six-month highs against the two currencies respectively.
David Cameron had warned the Times before the election a hung parliament could cause a currency crisis.
Mr Stott said: "This positive news for sterling, set against the backdrop of continued euro downgrades and fears of a double-dip US recession, has put the pound into the limelight as a potential safe haven currency."
The pound had plummeted by four per cent against the euro and three per cent against the dollar on the day the general election revealed no party had an overall working majority.
Posted by Clive Arneil
