On the back of the exit polls and overnight counts the pound has enjoyed its biggest jump since 2009 - the value of the currency increased by a whole percent after the BBC/Sky News/ ITV exit poll was published at 22:00.

One pound is currently worth €1.38 and $1.54 USD.

The Conservative Party was widely backed by the UK's business community, they are seen as the 'market friendly party' and a surge in the FTSE 100 is expected this morning.

Bill O'Neill, head of the UK Investment Office at UBS Wealth Management, told the Reuters: "The odds were stacked against such a decisive outcome.

"This result is far less complicated than the markets' worst fears," he said.

But while the short-term political risks may have diminished for investors, the longer-term risk of Britain holding a referendum to leave the European Union remains, particularly for sterling, and attention may swing towards that possibility.

Ian Stannard, senior currency strategist at Morgan Stanley, said: "We have some of the near-term political risks being removed but there are a couple of factors that are going to work against sterling for the longer term."

"The risks of an EU referendum will come into focus and fiscal austerity under the Conservatives may also mean that the Bank of England keeps interest rates lower for longer."

Additional reporting by IRN