THE pound has rallied following the dramatic resignation of Liz Truss after just 44 days in office.
In an astonishing statement made outside Downing Street this afternoon, the prime minister finally bowed to calls from a dozen Tory MPs to resign.
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Sterling shot up to $1.13 before the speech as markets anticipated that Ms Truss would resign.
It currently starts at around $1.127 after her resignation statement.
Before Liz Truss’ announcement, the pound was up 0.7% and trading around $1.12 against the dollar.
The value of the pound has had a roller-coaster recently, as markets have been spooked by political turmoil.
Markets rallied on Monday after Jeremy Hunt ripped up most of last month’s mini-Budget policies.
The Chancellor announced the planned 1p cut to the basic tax rate will be delayed “indefinitely” and said the energy price guarantee would only last until April instead of the planned two years.
Following these u-turns, the pound was trading 1.3% higher against the dollar to $1.13.
Yields on gilts – UK government bonds – have also eased slightly in response to Prime Minister Liz Truss’s decision to resign.
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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.
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