There has been a positive market reaction to the resignation of Liz Truss after just 44 days in office, following the fierce backlash against her economic plan and humiliating climbdown.

News that the prime minister was to make a Downing Street statement sparked a rally for sterling versus the dollar – leaving the UK currency almost a cent up on the day at one stage at $1.13.

It remained half a cent higher following confirmation she was to leave office.

Shares also moved higher initially on the FTSE 100 and government borrowing costs fell.

The 30-year gilt yield fell back to 3.8% – continuing its recovery since the post mini-budget highs of around 5% that sparked Bank of England intervention.

It took a series of U-turns on the growth plan, initiated by new Chancellor Jeremy Hunt after the sacking of Kwasi Kwarteng, for market damage to ease.

Related posts:

Lloyds chief has his work cut out as he prepares for one of banking’s toughest jobs Amazon boss (and world’s richest man) Bezos backs tax hike after Biden criticism Pound strengthened after weekend election results Twitter chief executive Jack Dorsey resigns ‘Christmas became a little more expensive’: Shop price inflation highest since March 2019 Food start-up Sessions toasts Guinness backing in £7.5m fundraising Iceland has 11% of staff isolating as retail warns Omicron rules threaten disruption Local authority-backed Together Energy latest to face collapse Sony takes gamble on electric cars as it seeks to ‘redefine mobility’ Cost of living crisis, remote working roles and tackling scam reviews Three things that need to happen for prices to return to normal Bust taxpayer-backed events company Pollen lays off bulk of staff