The British Pound has fallen against the US dollar

Update News:The British Pound has fallen against the US dollar and the euro as worries increase that the UK will end up with a hung parliament in the upcoming general election. 

On Monday, the pound tumbled to a 10-month low, as doubts about political uncertainty following the UK general election and the ability of the government to remedy the high fiscal deficit put the currency under heavy selling pressure. 

The British pound fell below $1.50 for the first time since May 2009. 

A recent opinion poll suggests that the UK Labour Party may be able to remain the biggest party following the general election. However, there are doubts it will have enough of a parliamentary majority to avoid a hung parliament, in which no party has a majority. Such a scenario would make it harder to pass legislation and could hurt the nascent economic recovery. 

Investors are particularly worried that a hung parliament would make it harder for the UK to decisively cut its large budget deficit.