LONDON, March 13 (Reuters) - Sterling inched higher against the dollar and euro on Monday after Scottish National Party leader Nicola Sturgeon said she would seek permission to hold a fresh Scottish independence referendum which would be held at earliest in late 2018.
The pound initially fell below $1.22 as the Scottish leader announced she would seek authority to hold a new vote as Britain gets ready to trigger Article 50, its formal notification of exit from the European Union.
But it swiftly turned to bounce higher after she said Scotland must be offered a new independence vote between the autumn of 2018 and the spring of 2019.
The UK currency was last up 0.4 percent at $1.2222, around 10 ticks above levels seen when Sturgeon started speaking. It also rose half a percent on the day to 87.26 pence per euro. (Reporting by Ritvik Carvalho; editing by Patrick Graham)