The pound has spiked against the Euro as an exit poll predicted a massive Tory majority in the general election.
Sterling hit an 18-month high against the dollar and was in touching distance of pre-Brexit referendum levels against the euro.
A pound was up 2.21% to 1.347 dollars and up 1.38% to 1.205 euros within minutes of the announcement.
Reaction from the City was one of relief, with traders previously expecting to stay up all night comfortable that the exit poll will play out.
Dean Turner, an economist at UBS Wealth Management, said: "We've long said that sterling looks a very cheap currency. If Brexit is indeed completed by the end of January, we see the pound trading as high as 1.35 against the US dollar.
"However, a long-term lack of clarity on Brexit and sterling to produce minimal UK earnings growth next year."
The BBC/Sky/ITV poll suggested the Conservative would win 368 seats, 42 above the 326 needed for an absolute majority in the House of Commons.
The exit poll suggests the biggest majority for a Conservative government since 1987.
Labour is predicted to win 191 seats, the Scottish National Party 55, Liberal Democrats 13, the Brexit Party none, Plaid Cymru three and Greens one.
This would give the Tories a majority of 86.
It would represent the largest majority for a Conservative leader since Margaret Thatcher in the 1980s.
A Labour Party spokesman said: "It's only the very beginning of the night, and it's too early to call the result.
"We, of course, knew this was going to be a challenging election, with Brexit at the forefront of many people's minds and our country increasingly polarised.
"But Labour has changed the debate in British politics. We have put public ownership, a green industrial revolution, an end to austerity centre stage and introduced new ideas, such as plans for free broadband and free personal care. The Tories only offered more of the same."
John McDonnell said: “Let’s see the results themselves. The appropriate decisions will be made and we’ll always make decisions in the best interests of our party.”
He told the BBC he now accepted it was “the Brexit election” - despite Labour’s attempt to focus on other issues throughout the campaign.
