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

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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 Labours pie-in-the-sky nationalisations and free broadband.

City experts claim Jeremy Corbyn would make the Pound plummet if he becomes Prime Minister

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.

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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