Pound will plummet if Jeremy Corbyn wins election and snatches key to No10, experts warn

THE Pound will plummet if Jeremy Corbyn snatches the keys to No10, City experts warned last night.

Investors fear a splurge in public borrowing to pay for Labour’s pie-in-the-sky nationalisations and free broadband.

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But Sterling could experience a “Boris Bounce” if the Conservatives hold onto power and dodge a hung parliament.

Neil Wilson, of City firm Markets.com, said: “Sterling will suffer a hard drop if there is anything other than a Tory majority.

“There should also be a bit more upside should the Conservatives secure a strong majority — a Boris Bounce perhaps.” The FTSE 100 had an up-and-down day yesterday as traders were struck by pre-election jitters.

It climbed as high as 7,250 in early trading before slipping back below 7,200 on a couple of occasions. It ended back where it started.

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The FTSE 250 index of mid-sized stocks spent the entire trading day in the red. Jordan Rochester, a currency strategist at Nomura in London, told the Financial Times that panic could set in if the Conservatives do not exceed the 339 seats predicted in a YouGov poll.

He said: “Anything sub-340 will not be welcomed by the market."

Rodrigo Catril, a currency strategist at National Australia Bank, said an outright Tory majority could push sterling up to a more than 18-month high of $1.36.

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