Sterling gained 0.4 percent to $1.197 as traders downplayed the prospect of an end to months of chaos under Mr Johnson’s leadership. Mr Johnson will stay on as prime minister while the Tories decide on a new leader. He will make a public statement later today after dozens of ministers resigned, making it virtually impossible for the government to function. As markets reacted to the news, sterling regained some of the ground it lost this week, but remains more than 10 percent down against the US currency. The pound hit a two-year low against the dollar on Tuesday amid growing fears about the future of the British economy. The dollar strengthened in response to a series of big interest rate hikes by the US Federal Reserve. A weak pound serves to push up prices for goods the UK imports, such as energy, food and manufactured goods. Consumer price inflation hit 9.1% in May and is expected to jump to 11% later this year, meaning households face big cuts in living standards as wages fail to keep up with the rising cost of essential goods. While the country’s new leadership promises to bring some political stability, the new prime minister will still face a long list of economic problems. Consumer confidence has hit its lowest level on record according to a long-running survey by Growth from Knowledge (GfK), while car sales fell to their lowest level for any June since 1996. The construction industry is also slowing, new industry figures show . The Bank of England said on Tuesday that the outlook for the UK economy has “deteriorated materially” since Russia invaded Ukraine.
title: “Boris Johnson Pound Rises Against Dollar As Pm Resigns " ShowToc: true date: “2022-12-20” author: “Arthur Freyermuth”
Sterling gained more than 0.4 percent to $1.2 as traders downplayed the prospect of an end to months of chaos under Mr Johnson’s leadership. He will remain in his post while the Conservative Party chooses a new leader. As markets reacted to the news, sterling regained some of the ground it lost this week, but remains more than 10 percent down against the US currency. The pound hit a two-year low against the dollar on Tuesday amid growing fears about the future of the British economy. The dollar strengthened in response to a series of big interest rate hikes by the US Federal Reserve. A weak pound serves to push up prices for goods the UK imports, such as energy, food and manufactured goods. Consumer price inflation hit 9.1% in May and is expected to jump to 11% later this year, meaning households face big cuts in living standards as wages fail to keep up with the rising cost of essential goods. While the country’s new leadership promises to bring some political stability, the new prime minister will still face a long list of economic problems. Consumer confidence has hit its lowest level on record according to a long-running survey by Growth from Knowledge (GfK), while car sales fell to their lowest level for any June since 1996. The construction industry is also slowing, new industry figures show . The Bank of England said on Tuesday that the outlook for the UK economy has “deteriorated materially” since Russia invaded Ukraine.
