The pound sterling it rose 1.5% to $1.1331.
“We understand and we have heard,” Kwarteng said of the reversal of the 45% tax bracket cut plan, a contentious part of the package of measures that brought sterling to a record low of $1.0327 and he fired the gilts, prompting the Bank of England to intervene.
“Sterling has clearly fared better on the news, but there are still many question marks, after all the 45% tax rate was only a small part of the announced unfunded tax cuts”said Jane Foley, head of foreign exchange strategy at Rabobank.
Other currencies
The Japanese yen was quoted to more than 145 units per dollar for the first time since September 22, when the authorities intervened to prop up the currency. It later changed trend and rose 0.3% to 144.34 yen per dollar.
The yen has been weakening due to Japan’s policy of keeping interest rates low at a time when they are rising elsewhere, and after much speculation the authorities intervened in the markets last month, spending a record 2 .8 trillion yen ($19.7 billion) to prop up the currency.
The Chinese Yuan it rose about 0.6% against the dollar to 7.0975 per dollar.
the euro won down 0.3% to $0.97823. Data showed euro zone manufacturing activity continued to weaken last month
Source: Ambito
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