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Pound Claws Back Budget-Shock Loss on Bets for Policy Revamp

  • Sterling has risen around 8% from record low set Monday
  • Pound now has much stronger yield support, Westpac says
Bloomberg business news
UK Markets Turmoil: Can Truss Restore Calm?
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The pound rallied for a fourth day as traders speculated the UK government will water down fiscal policies that pummeled the currency to a record low at the start of the week.

Sterling soared over 1% on Friday to $1.1234, surpassing levels seen before the Chancellor of the Exchequer Kwasi Kwarteng announced plans for debt-fueled tax cuts in Parliament a week ago. The currency was also supported by a slide in government bond yields following intervention by the Bank of England to stem the turmoil.