In assuring the importance of political stability on any country’s economy, the market has been driven the past weeks by several political factors and dynamics. On top of the list is the pound, which dropped for a sixth day versus the dollar amid concern U.K. citizens will struggle to elect a government strong enough to reduce the country’s debt.

The U.K. currency weakened against all 16 of its most- active counterparts after polls showed Britain may have its first minority administration since 1974. The pound slid to $1.4854 from $1.4991 in New York yesterday when it dropped to $1.4784, the lowest level since May 1. It weakened to 90.79 pence per euro from 90.47 yesterday.

The U.S. dollar rose for a second day against the yen after Philadelphia Federal Reserve Bank President told the Wall Street Journal the central bank should back away from its pledge to keep interest rates low for an “extended period.”

The dollar strengthened 0.2 percent against the yen to 89.37 also driven by on speculations that the U.S. policy makers may start to remove emergency measures introduced to revive the economy.

Speaking about the euro, it slid a second day against the dollar on speculation Greece will have to outline further spending cuts as Prime Minister George Papandreou prepares to meet Germany Chancellor Angela Merkel on March 5.

This made the Euro reach a low at $1.3436 and most reports state that the Euro may not survive and will experience further losses along the way. Investors will prefer the safer haven of the dollar in this type of environment.