The pound dropped to a nine month low yesterday after polls showed Britain may have its first minority government since 1974 and ahead of a report forecast to show that a recovery in consumer confidence stalled in February.

The pound was at $1.4867 in Tokyo from $1.4991 in New York yesterday when it dropped to $1.4784, the lowest level since May 1. It was at 90.89 pence per euro from 90.47 pence yesterday after reaching 91.50, the weakest since Dec. 1.

Having rallied last night and momentarily moved back above $1.50, sterling fell again in early trading today, at one stage hitting $1.4853 — only half a cent above the nine-month low of $1.4784 that it reached yesterday.

And although certain Scots in Westminster are putting a brave face on it, others are preparing for the worst…

Bloomberg: While the eyes of the world focus on Greece’s debt crisis, investors in Edinburgh are busy preparing for the U.K. to be next.

Turcan Connell, which caters to rich families, expects the pound to lose between 20 percent and 30 percent against the dollar once investors turn their sights on Britain as the government sells a record amount of debt. Sterling slid to a 10- month low versus the U.S. currency today.

“Alarm bells were ringing in Greece for a long time and when it happened, it happened very quickly,” Haig Bathgate, head of strategy at Turcan Connell, said at the company’s offices in the Scottish capital. “The U.K. is in a similar predicament. It could be hit very hard.”

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