LONDON: The cost of hedging against sharp swings in the British pound ahead of the Scottish referendum in a week's time jumped to 13-month highs on Thursday.
The one-week sterling/dollar implied volatility rose to a high of 11.725 percent, according to Reuters data, its highest level since July 2013. The one-week options will expire on Sept. 18, the day of the Scottish vote on independence.
In the spot market, sterling was trading flat at $1.6215 , recovering from a 10-month low of $1.6051 struck on Wednesday.
It bounced in late trade on Wednesday to hit a high of $1.6231, after a survey showed that 53 percent of Scots intend to vote against splitting away from the UK.
The poll, carried out by Survation on behalf of the Daily Record newspaper, showed 47 percent intending to vote "Yes" to the split.
The figures excluded 10 percent of people who were undecided.
The euro was down 0.1 percent at 79.605 pence, well below a three-month high of 80.66 pence struck on Wednesday.
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