Scottish Independence: Sterling Pounded to 10 Month Low on Union Break Fears
Scottish Independence: Sterling Pounded to 10 Month Low on Union Break FearsReuters

British Sterling has fallen to its lowest level in 10 months after a poll showed a 'yes' vote for Scottish independence was in the lead for the first time.

The currency tumbled 1% in early Asian trading on 8 September to $1.6165, while also falling by the same percentage against the euro.

Scottish people will vote in an independence referendum on 18 September, 2014, and will be asked the straight "yes/no" question: "Should Scotland be an independent country?"

According to a YouGov poll on 7 September, support for Scottish independence took the lead for the first time since the referendum was announced.

The poll, which was conducted between 2 and 5 September, show 51% of the 1,084 surveyed are planning to vote for independence while 49% intend to opt for staying within the union with England.

The markets have become spooked as the uncertainty over what would happen to the pound, in the event of independence, has still yet to be clarified.

The Scottish National Party has promised Scots that the country would keep the pound, even if it became an independent country, but any refusal by the UK government would result in them not paying their debt.

However, all parties have supported Chancellor George Osborne's pledge that if "Scotland walks away from the UK, it walks away from the pound."

"A vote for independence only marks the opening chapter in uncertainty over issues ranging from the timelines for political and economic independence, resultant institutional frameworks, lender of last resort for Scotland, the division of assets and liabilities, fiscal impact and policies, and what currency choices Scotland will have available and choose," said Barclays in a research note.