Pound hits 10 month low on Scottish independence uncertainty

The ongoing debate about whether or not Scotland will become an independent nation has had a negative impact on the pound.

The currency dropped one per cent in early Asian trading against the dollar to $1.6165 (£0.99) and down to €1.2527 (£1.002) against the euro. It represented the lowest level for ten months and comes as a recent YouGov poll suggests that Scotland is leaning towards voting 'Yes' on becoming an independent nation.

Scotland goes to the polls on September 18th where voters will be asked the "Yes/No" question: "Should Scotland be an independent country". Following months of campaigning recent figures have suggested that the Better Together group has lost its lead and that the voting public is favouring a 'Yes' vote.

The poll, published in the Sunday Times, stated of those that had made up their mind, 51 per cent voted to leave the UK while 49 per cent backed staying a part of Great Britain.

The head of the 'No' party, Alistair Darling, recently denied that the campaign's decision to lay out a timetable of giving more powers to Scotland if it stayed in the union was a panic move. The plan had been put forward by chancellor George Osborne which included further devolution should Scotland decide against going independent but Mr Darling stated that it was not a panic move in response to the latest polls.

One of the key questions surrounding Scotland's independence is whether or not the country will retain the pound. Mr Osborne recently stated that Britain would not share the currency if the union is dissolved.

Speaking on BBC's Andrew Marr show, the chancellor stated: "No ifs, no buts, we will not share the pound if Scotland separates from the UK."

It is feared that this ongoing uncertainty could further weaken the pound against foreign currencies.

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