UPDATE 2-Cost of hedging sterling exposure soars as UK election nears

April 9, 2015 3:26 PM

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LONDON, April 9 (Reuters) - Rising nervousness in the currency market about the risk of prolonged political uncertainty after British elections next month has driven the cost of protection against wild swings in the pound to multi-year highs.

Unlike last year, when many were caught napping by sharp moves in sterling shortly before a referendum on Scottish independence, hedge funds are taking no chances this time, traders said.

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