The pound slumped on Friday, as uncertainty over Brexit negotiations and its impact on business and the economy followed the result of the UK general election.
Sterling shed 1.7% to $1.2733 against the dollar, and was down 1.5% to €1.1384 against the euro.
Investors sought the safety of the bond market, pushing prices higher and forcing yields on the benchmark 10-year Gilt to retreat by about 5 basis points to 1.01%.
International stocks rise
UK stock markets were mixed, however, as the FTSE 100 – laced with international companies that would welcome a softer Brexit – gained nearly 1%.
The FTSE 250 – where the constituents are much more domestic focused – slipped 0.2%.
Theresa May, prime minister, called the snap election in April, hoping that favourable poll ratings would translate into a landslide victory at Thursday's election.
The Conservative party however was eight seats short of the 326 needed to carry it over the winning line.
May needed a coalition partner to gain a Commons majority – and the resulting Conservative and Democratic Unionist partnership looked a rather weak option to the markets.
David Lamb, head of dealing at FEXCO Corporate Payments, said: "The Prime Minister had hoped to begin Britain's Brexit negotiations this month with a thumping mandate and a spring in her step.