The value of the pound has rallied back to its highest levels since before Liz Truss’s mini-budget as Rishi Sunak was confirmed as the new British prime minister.
Sterling lifted 1.9 per cent higher to 1.149 against the US dollar after Mr Sunak started to confirm appointments in his new government.
Against the euro, the pound rose 0.9 per cent to 86.76 pence.
The increase saw the pound worth more than at any point since September 15th.
It comes following a turbulent period for the currency after Liz Truss was appointed prime minister on September 5th.
The mini-budget, led by Ms Truss and then-chancellor Kwasi Kwarteng, on September 23rd helped to drag sterling to an all-time low of 1.032 against the dollar just days later.
The Bank of England responded with a package of emergency government bond purchases which helped to steady some concerns over higher British government borrowing costs.
New finance minister Jeremy Hunt has also since scrapped a number of key policies, such as the planned reversal of a corporation tax increase, from the mini-budget update.
On Tuesday, gilt yields, which determine the interest that the UK government pays on some of its loans, were also lower.
Yields on 30-year gilts were 0.1 percentage points lower at 3.65 per cent, around the levels seen before the mini-budget.
