Pound Begins To Rise Against The Dollar As News Of Liz Truss’s Resignation Hits The Markets
Liz Truss’s resignation at Prime Minister has seen the pound rally as her departure revitalised the markets.
It came after a chorus of politicians clambered to urge the embattled PM to go.
As Mrs Truss announced she was going the pound rocketed against the dollar to hit $1.13.
Earlier it had begun to climb as MPs made it clear they wanted her to step down.
Yields on gilts – UK government bonds – also eased slightly in response to her decision.
UK 30-year gilt yields, which fall as price improve, fell back by 0.44% to 3.86% on Thursday.
Yields had dropped even further shortly before the Prime Minister’s statement at 1.30pm but sprang back slightly.
Last night the FTSE 100 had slipped into the red as the UK’s inflation rate hit another 40-year high in September.
London’s top index lost grip of the gains made earlier in the week as enthusiasm waned in the aftermath of Chancellor Jeremy Hunt’s fiscal policy U-turns.
The UK’s Consumer Prices Index reading came in above expectations, at 10.1% in September, driven up by surging food prices, the Office for National Statistics said.