General Election 2015: Shares close down and and sterling falls as Britain heads to the polls

Jessica Morris
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Sterling fell against the dollar today (Source: Getty)

Nervous investors sent shares in London lower today, while the pound also suffered, as Britons began to head to the polls in what's been repeatedly dubbed the most uncertain election in living memory.

The bluechip FTSE 100 index closed 0.67 per cent down, at 6,886 points - although at one point in mid-morning trading it dipped to as low as 6,811, it to its lowest level since the start of April.

The FTSE 100 Volatility Index also rose, a sign investors think the economic outlook is increasingly uncertain.

"Given the rally we've had so far this year, you could not say that the mood is too alarmist over the election outcome," Dafydd Davies, partner at Charles Hanover Investments, told Reuters.

"However, the risk of a hung parliament is causing people to sell out a bit to cash in on the rally," he said.

One-week volatility of the pound against the dollar hit levels not seen since the Scottish independence referendum, showing currency investors think that sterling is becoming an increasingly risky bet.

Sterling fell 0.1 per cent against the dollar to $1.5232.

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