The pound is expected to decline during Forex trading today (May 7th) following the outcome of the general election.
With the majority of seats having been counted, the Conservative Party seems set to be the largest party in what will be a hung parliament.
According to Reuters, this caused the pound to weaken against the dollar, reversing earlier gains and hitting a one-year low of $1.4649 at 06:37 BST.
It also slipped against the euro in early trading, falling to 86.34p.
The markets had been expecting the formation of a hung parliament for some time, but there are still worries it will create difficulties when it comes to reducing the UK's fiscal deficit.
Trading on the FTSE 100 was also lower when stock market trading began, with the benchmark index dropping 1.32 per cent to 5,191.70 points at 08:36 BST.
Falls seen yesterday were extended, as traders continue to worry the debt problems in Greece could spread across the eurozone.
