Shares Rise But Pound Flat As Scots Vote No

The pound strengthened and the FTSE 100 gained ground following the No vote in Scotland's independence referendum.

Sterling, already higher on Thursday on speculation the Yes vote had fallen short, gained another half of 1% in early deals - as high as $1.65.2 - but later turned flat as market participants mulled the consequences of likely constitutional change.

The pound had fallen to a low of $1.60.7 during the campaign.

Banking stocks were among the biggest winners when the FTSE 100 opened for business, given the end of the uncertainty, though share price rises too were tempered by new worries over the planned shake-up of national powers.

Royal Bank of Scotland (RBS) had warned it would move its headquarters from Edinburgh in the event of a Yes vote - a move that would have cost it millions of pounds in the short term while Lloyds, which owns Bank of Scotland, had said it would have had to move its registered office.