The currency fell after exit polls revealed Prime Minister Theresa May's Conservatives may not win a clear majority. The lack of a clear winner may cause further market uncertainty.
The uncertainty of the UK elections pushed the Pound Sterling to a two month low on Friday.
The possibility of a hung parliament caused the pound to lose as much as 2 percent against the US dollar at one point before making a small recovery. As of 0150 UTC, the pound lost 1.2 percent to the dollar, trading at $1.2785. The pound fell 1.2 percent against the euro as well.
"It's clear that the election is a humiliation for the Tories, who blew a massive poll lead in just a few weeks," said Westpac senior currency analyst Sean Callow.
Thursday night's uncertainty could be a sign of things to come, warned OFX head of corporate dealing Michael Judge.
"We could be heading for a period of market uncertainty, which will be compounded by the elephant in the room this time around - the forthcoming Brexit negotiations," said Judge.
Rocky pound
Following last year's vote to leave the EU, the UK currency plummeted and sent international markets haywire after they expected the UK to remain.
The pound continued to fall after the Brexit vote, falling to a 31-year low in October. The pound made a slight recovery going into Thursday's elections, but was still nowhere close to pre-Brexit levels.
A hung parliament would make Brexit negotiations much more complicated.
"We expect that political haggling would get messier than before," said SMBC Friend Securities chief strategist Toshihiko Matsuno.
"This is a negative and will impact the pound and FTSE 100."
Japanese businesses with major business in the UK fell in early Asian trading Friday. Automaker Nissan fell 0.32 percent and Hitachi fell 0.41 percent.
The uncertainty of the UK elections pushed the Pound Sterling to a two month low on Friday.
The possibility of a hung parliament caused the pound to lose as much as 2 percent against the US dollar at one point before making a small recovery. As of 0150 UTC, the pound lost 1.2 percent to the dollar, trading at $1.2785. The pound fell 1.2 percent against the euro as well.
"It's clear that the election is a humiliation for the Tories, who blew a massive poll lead in just a few weeks," said Westpac senior currency analyst Sean Callow.
Thursday night's uncertainty could be a sign of things to come, warned OFX head of corporate dealing Michael Judge.
"We could be heading for a period of market uncertainty, which will be compounded by the elephant in the room this time around - the forthcoming Brexit negotiations," said Judge.
Rocky pound
Following last year's vote to leave the EU, the UK currency plummeted and sent international markets haywire after they expected the UK to remain.
The pound continued to fall after the Brexit vote, falling to a 31-year low in October. The pound made a slight recovery going into Thursday's elections, but was still nowhere close to pre-Brexit levels.
A hung parliament would make Brexit negotiations much more complicated.
"We expect that political haggling would get messier than before," said SMBC Friend Securities chief strategist Toshihiko Matsuno.
"This is a negative and will impact the pound and FTSE 100."
Japanese businesses with major business in the UK fell in early Asian trading Friday. Automaker Nissan fell 0.32 percent and Hitachi fell 0.41 percent.
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