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uk elections results

The pound has fallen sharply after the UK’s general elections resulted in a hung parliament.

The currency’s value had dropped overnight, and as trading began in London it slipped further, standing 2.3% lower at just below $1.27, with markets worried about heightened political uncertainty.

Against the euro, the pound was down 2% at 1.1344.

However, UK’s shares opened higher with the benchmark FTSE 100 index up 1.3% at 7,544.78 points.

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A fall in the value of the pound tends to boost the FTSE 100 as the majority of companies in the index have significant operations overseas. A weaker pound means profits earned abroad are worth more when converted back into sterling.

Traders had been expecting a clear victory for PM Theresa May’s Conservative Party, but are now concerned about political uncertainty.

The projection is that the Conservatives will be the largest party with 318 seats – eight short of a majority.

While the pound’s move is significant, it is far less striking than that seen in the aftermath of the Brexit vote in June 2016, when it plunged more than 10%.

Some analysts say that might reflect the diminishing prospect of a “hard” Brexit.

Sterling initially fell after an exit poll was released as the polls closed at 22:00 cast doubt on an overall Conservative majority, raising concerns about increased uncertainty and a possible delay to Brexit negotiations.

Sterling has been trading in a range between $1.28 and $1.30 in recent weeks.

David Cameron’s conservatives have won the UK’s general elections and are expected to form a slender majority in the Commons.

His party made gains in England and Wales.

Ed Miliband is expected to stand down later after Labour Party was all but wiped out by the SNP in Scotland.

The Liberal Democrats are also heading for a fewer seats.David Cameron wins elections 2015

The Conservatives are expected to have won a 37% share of the national vote, Labour 31%, UKIP 13%, the Lib Dems 8%, the SNP 5%, the Green Party 4% and Plaid Cymru 1%.

PM David Cameron declared victory in a speech after being returned as MP for Witney, in which he set out his intention to press ahead with an in/out referendum on Britain’s membership of the European Union and to complete the Conservatives’ economic plan.

“I want to bring our country together, our United Kingdom together, not least by implementing as fast as we can the devolution that we rightly promised and came together with other parties to agree both for Wales and for Scotland.

“In short, I want my party, and I hope a government I would like to lead, to reclaim a mantle that we should never have lost – the mantle of One Nation, One United Kingdom. That is how I will govern if I am fortunate enough to form a government in the coming days,” he said.

David Cameron is expected to hold an audience with Queen Elizabeth II later on Friday.