Pound regains ground after UK's political turmoil led slump; GBPINR futures slip under 117 mark

Business Standard

7 hours ago

The British pound recovered from a one-week low against the dollar after Prime Minister Keir Starmer said that Reeves who is seen by markets as a big defender of fiscal rules, would continue in her post. Pound slumped by nearly 1% in the previous session and 10-year UK gilt yields surged 17 basis points (bps) or almost 4% to near 4.61% after Prime Minister Keir refrained from backing Chancellor of the Exchequer Rachel Reeves till next elections, following the announcement of an increase in welfare schemes by the government. GBPUSD is currently trading at $1.3669, up 0.20% on the day. Meanwhile, Bank of England Governor Andrew Bailey said on Tuesday that the path of interest rates will continue to be gradually downwards, as the central bank juggles taming inflation and stoking elusive economic growth. On the NSE, GBPINR futures are trading lower by 0.65% at 116.80.