Voting is underway in European and council elections in Britain as prime minister Gordon Brown came under increasing pressure in the wake of the resignations of two cabinet ministers.
But speculation in financial markets today that Mr Brown would resign were "absolute nonsense," his office said .
The pound moved sharply lower against the dollar in midday trade with dealers citing talk of Mr Brown stepping down.
Election results will not be in until Sunday night, after polls close in countries elsewhere in Europe.
The large majority of council election results are expected tomorrow afternoon
Mr Brown is braced for disastrous results after recent opinion polls suggesting support for Labour is at record low levels.
With the prime minister already under intense pressure after a string of resignations from his Government, poor election results will embolden rebels agitating for his exit.
A YouGov survey for the Daily Telegraphsuggested that, in elections to the European Parliament, Labour could finish behind the anti-EU UK Independence Party (Ukip).
It said that, among people certain to vote, Labour support stood at just 16 per cent, behind the Tories on 26 per cent and Ukip on 18 per cent. The Lib Dems were on 15 per cent, the Greens on 10 per cent and the far-right British National Party (BNP) on 5 per cent - enough to give it its first seat in Brussels.
Ukip, the BNP and the Greens have been tipped to capitalise on the public backlash against the major parties that have been caught at the centre of the MPs' expenses scandal.
PA