Pound sinks as May's Tories lose majority in U.K. election

Investing.com - The pound sank Friday as U.K. PM Theresa May's Conservatives lost their overall majority in the general election. That left the situation of a hung parliament, with a coalition needed to form a government. Sterling was off 1.13% at $1.2685 at 03:15 ET. The pound was off 1.95% against the euro at €1.1331. The result of the election left May's future up in the air, but she said she would not stand down. May had called the snap election in a bid to secure a ""strong and stable leadership"" heading into Brexit talks.That left the specter of Britain calling for a delay in Brexit talks as negotiations proceed to form a U.K. government. May had called for a so-called ""hard Brexit"" but the new government may have to soften its stance. Elsewhere, the dollar index moved back above 97 after sacked FBI chief James Comey's testimony. Comey accused the Trump administration of lying about the FBI and himself. But he did not accuse Trump of ordering him to drop a probe into Russian links in presidential race. The euro dipped below $1.12 after losing ground after the ECB policy meeting. The ECB left policy on hold but removed a reference to the possibility of further rate cuts in its guidance. More tellingly, ECB chief Mario Draghi said there was no discussion of tapering. The dollar also firmed against theyen moving back above the 110 mark.