Pound Rebounds, UK Borrowing Costs Drop as Sunak Becomes Prime Minister
The value of the pound has rallied back to its highest levels since before last month’s crash and the cost of UK government borrowing has decreased, as financial markets react to Rishi Sunak’s appointment as the new UK prime minister.
Sterling lifted 1.9 percent higher to 1.149 against the U.S. dollar after the new prime minister started to confirm appointments to his new cabinet.
The increase saw the pound worth more than at any point since Sept. 15, though it eased back marginally to 1.146 during afternoon trading in London.
Meanwhile, gilt yields, which determine the interest that the UK government pays on some of its loans, were also lower….