Pound soars on new Liz Truss energy lifeline as UK markets bounce back – FTSE updates

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Sterling, which hit a 37-year low yesterday, recovered slightly versus the dollar to hit the day’s high as Ms Truss spoke and was last up 0.2 percent on the day at $1.1554. It had been down half a percent earlier in the day.

The FTSE 250 midcap index hit a session low as Ms Truss spoke and was down 0.15 percent by 11am. The blue-chip FTSE 100 index was little changed, up 0.2 percent.

Investors have been selling British assets heavily in recent weeks, spooked by the scale of the UK’s economic challenges and concerns over whether Ms Truss and her new team’s approach to cut taxes and raise spending is the right one.

Robert Alster, Chief Investment Officer at Close Brothers Asset Management, said: “The initial thought is one of immense relief – we knew disposable incomes were going to return to the low levels of the 1980s and there would be a fairly major recession, and this may avert it.

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