Sterling has fallen below $1.29 after YouGov reports that the Conservatives only have a five-point lead over Labour

8.48am BST

Ironically, the drop in sterling is helping Britain’s stock market outperform the rest of Europe.

Most European markets are in the red, dragged down by energy companies (who have fallen following the drop in the oil price).

8.36am BST

The Conservative’s shrinking election lead is the main story in the City this morning, reports Connor Campbell of SpreadEx:

The most notable move came from sterling, which plunged half a percent against both the dollar, taking cable to a near 2 week low, and the euro, where the pound now sits at its worst price in around 2 months. The reason for this fall? Well, the latest election poll, conducted by YouGov for The Times, has seen the Tories’ lead slashed to just 5 points, with Labour continuing to mount a post-manifesto release comeback.

Any growth managed by sterling since April has largely been predicated on the assumption that the Conservatives would secure a landslide victory. That this presently doesn’t seem to be the case has helped further erode confidence in the currency’s current position.

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