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More woes are in line for the economic future of the United Kingdom as the pound had nose dived against the dollar on Friday which is coming on the heels of the British Prime Minister, Liz Truss sacking her finance minister, Kwasi Kwarteng in response to a budget that sparked markets chaos.
The Pound Sterling had reportedly sank 1.2 percent to $1.1188 after Prime Minister Liz Truss had finally dismissed the chancellor of the exchequer and it has been seen that the yield on the 10-year UK government bond dipped to 3.98 percent. It had hit 4.64 percent Tuesday amid uncertainty over Kwarteng’s future.
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“Truss is attempting to restore credibility in her administration by firing Kwarteng amid the market mayhem,” said Interactive Investor analyst Victoria Scholar.
His unnamed successor will also be Britain’s fourth finance minister in as many months after Rishi Sunak had resigned and his successor Nadhim Zahawi had not been retained by Truss.
She had also edged out Sunak in the battle to succeed Boris Johnson as the British prime minister.
The pound had also rallied Thursday on speculation over more U-turns over Kwarteng’s controversial tax-slashing budget and in the immediate aftermath of the budget in late September, sterling hit a record dollar-low close to parity.
British Prime Minister Liz Truss had on Friday dismissed her finance minister, forcing Kwasi Kwarteng to carry the can for turmoil sparked by her right-wing economic platform as restive Conservatives plotted her own demise.
The chancellor of the exchequer was dismissed in person by Truss after he rushed back early from international meetings in Washington, multiple media reports said, and she was due later to hold her first Downing Street news conference.