Pound rallies as Truss resigns

The Prime Minister’s departure sees sterling strengthen from recent lows

The resignation of the UK Prime Minister Liz Truss after just sex weeks in office has bolstered the national currency, the pound.

Sterling was up 0.5% touching $1.13 against the US dollar before slipping slightly back.

British stocks also moved upwards initially on the FTSE 100 before retreating, with FTSE 250 still in the green.

One analyst told the BBC that the markets were “relieved” by Truss’ departure despite there still being a lot of uncertainty.

Announcing her resignation, Liz Truss admitted she couldn’t deliver her mandate. Her fiscal policy that promised huge tax cuts without explaining how the government would pay for them sent borrowing costs soaring. Last week saw the exit of Chancellor of the Exchequer Kwasi Kwarteng, and his successor Jeremy Hunt took a series of U-turns on Truss’ original plan.

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