Sterling hits five-year low against dollar as election fears spook investors

City of London fears over a hung parliament and surprise data feeding doubts about UK economy drags pound down

Growing City jitters about the prospect of a hung parliament and signs of weakness in the key manufacturing sector prompted sterling to hit a five-year low against the dollar in foreign exchange markets on Friday.

Sterling fell to $1.4558 on Friday morning - the lowest level since the uncertain days that followed the 2010 general election. It later recovered some ground but still closed down 0.51% on the day at $1.4637. Against the euro, it was flat at a1.379.