Pound Rallies as Traders Eye Shift in Fiscal Stance Under Hunt
- Sterling rises as much as 0.9% against dollar in Asia trading
- New chancellor raises hopes of further tax-cut reversals
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The pound rose in Asia trading as investor confidence was bolstered by expectations that more of Prime Minister Liz Truss’s package of unfunded tax cuts may be reversed.
Sterling gained as much as 1.2% to $1.1305. The newly appointed Chancellor of the Exchequer, Jeremy Hunt, said in a BBC interview on Sunday that nothing is “off the table” when it came to potentially abandoning more of the premier’s planned measures. Hunt will make a statement later on Monday on measures from the medium-term fiscal plan, according to a statement. The UK Prime Minister had also signed off on deferring a 1p income tax cut until 2024, The Times’ Steven Swinford said in a tweet early London morning Monday.