Jittery investors reduce exposure to pound

Currency investors managing trillions of dollars are sitting out the United Kingdom's closest election since the 1970s.

BlackRock Inc, Citigroup Inc's private-banking unit and Loomis Sayles & Co have all cut their exposure to the pound as the cost jumps for options to hedge against its declines.

Volatility in the currency is surging, with anticipated price swings suggesting the final outcome of the election might not be known for weeks after Thursday's vote. Opinion polls show the Conservative and Labour parties are neck-and-neck, with neither likely to gain enough support to govern without the help of smaller parties.