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(Close): The FTSE 100 index and sterling were both lower on Monday hit by concern over the outcome of Scotland's independence referendum.

Shares in Associated British Foods fell more than 5% after a trading update in which it said a strong performance from Primark would offset weakness from its sugar business.

Shares in Scotland-based companies were also hit after a weekend poll put the pro-independence campaign ahead.

Overall the FTSE fell 0.3% to 6834.77.

Shares in Standard Life and RBS, both with headquarters in Scotland, fell sharply and despite recovering some ground, both ended the day more than 2% lower.

"Be afraid, be very afraid," said the note to investors put out by Deutsche Bank's analysts.

Uncertainty over the Scottish referendum hit the pound as well as shares. Sterling was down more than 1% against the US dollar at $1.614. Against the euro, it was also down 1% at 1.247 euros.

Over the weekend a poll suggested those in favour of independence had taken a narrow lead for the first time.

"The pound is predictably taking a hit, my base case is still that there won't be a split but should there be a yes vote the pound will look vulnerable because of the 12-18 months of uncertainty that would lie ahead," said Neil Williams, chief economist at the UK-based fund manager Hermes.

Shares in the printing company De La Rue jumped more than 4% after the Bank of England said it had chosen the firm as its preferred bidder for the contract to print its plastic banknotes.