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Sterling falls after "firearms incident" near UK parliament

LONDON, March 22 Sterling fell to the day's low against the dollar and a six-day low versus the euro on Wednesday after loud bangs were heard outside Britain's parliament.

Police said they were called to a firearms incident on Westminster Bridge near parliament.

Sterling fell to $1.2424, down from around $1.2451 and leaving the currency down around 0.4 percent on the day.

The pound also hit a two-month low of 137.77 yen , down over 1 percent against the safe-haven Japanese currency.

The pound also hit the day's low of 87 pence per euro , also down 0.4 percent on the day.

British 10-year government bond yields fell to a more-than-two-week low of 1.175 percent. Gilt futures hit a session high.

Britain's blue-chip FTSE 100 index remained broadly unchanged, down 0.9 percent, as was the more domestically-exposed mid-cap index, down 1 percent. (Reporting by Jemima Kelly, Andy Bruce and Kit Rees, editing by Nigel Stephenson)

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