Pound surges against the euro and dollar as Theresa May announces 2017 General Election
THE pound has surged against the euro and dollar as Theresa May announced plans to launch a snap election later this year.
The Prime Minister plans to hold a General Election on June 8, she said outside Downing Street this morning.
The pound is now at its highest level against the US dollar since last December.
Sterling ended up 1.6 cents at 1.2762 against the US dollar - a four month high.
It has also hit an eight-week high against the euro, ending at 1.1926.
The pound had hit a three-week high against the dollar but dropped to 1.25, ahead of May's announcement.
Sterling has dropped dramatically against other currencies, including the dollar and the euro, since the vote to leave the EU in June last year.
It is still down by around 12 per cent against the dollar and 15 per cent against the euro, compared to before the referendum.
The FTSE 100 suffered its biggest one-day fall since the aftermath of the EU referendum last June.
The blue-chip index tumbled down 180 points, or 2.46 per cent, at 7147.
What happens next?
When will the snap General Election take place?
Parliament will be asked to vote tomorrow to hold an Election, with Theresa May needing the support of two-thirds of MPs in the House of Commons.
If the vote passes in favour off a snap General Election then it will be held on June 8.
Why has an election been called?
Speaking at her conference today, Theresa May blasted rival parties for trying to derail the Government's Brexit plans.
She said the Election was a chance to show unity, adding: “The country is coming together, but Westminster is not.”
What are the polls saying?
The latest opinion poll from YouGov has the Conservatives on 44 per cent, 21 points ahead of Labour on 23 per cent, with the Lib Dems on 12 per cent and Ukip on ten per cent.
Mr Corbyn has insisted Labour is ready for an election.
Half of voters believe Mrs May is the best pick for Prime Minister, against just 15 per cent who said Mr Corbyn, according to the poll.
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