NEW YORK: Increased worries that Scotland could break away from the United Kingdom kept pressure on the British pound on Tuesday.
Ultimately the currency held steady for the day, but only after rocky trade pushed it to $1.6065, its lowest level against the greenback since November last year.
"The poor old pound is still under pressure as traders are not brave enough to go bargain-hunting just yet. The possibility of Great Britain breaking up has hit the pound the hardest," said David Madden, analyst at IG trading group.
Prime Minister David Cameron and opposition Labour leader Ed Miliband agreed to skip their weekly debate in the House of Commons on Wednesday for a last-minute trip to Scotland to campaign for the union, as polls showed pro-independence Scots leading ahead of next week's referendum.
A "yes" vote would open the door for long, complicated negotiations on how the closely linked economies would be disentwined, including the fate of the pound as Scotland's currency.
Scotland would continue using the pound in the coming months but what happens after full independence is in doubt because the British government has excluded a currency union.
Bank of England governor Mark Carney made the point again on Tuesday, saying: "A currency union is incompatible with sovereignty" the uncertainty has dragged the pound down on the markets.
The dollar slipped slightly against the euro but pressed to a six-year high on the yen.
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