The pound has hit its highest level since mid-September, as investors welcomed the appointment of Rishi Sunak as prime minister and the dollar fell.
Sterling surged by 1.9% to $1.149 on Tuesday - the highest it has been since before Liz Truss’s mini-budget.
Government borrowing costs also fell back to where they were last month, in a boost for Mr Sunak who took over on Tuesday. recovery
Financial markets have been rattled by fears over the economy in recent weeks.
Experts said the pound’s strength was partly a “relief rally” after Mr Sunak was appointed, but also due to the dollar’s weakness.
The US currency dropped on Tuesday after data showed slowing US house price growth and a decline in US consumer confidence.
Mr Sunak, a former hedge fund manager, is seen as a safer pair of hands by investors and has pledged to fix “mistakes” made under Liz Truss’s leadership.
New Chancellor Jeremy Hunt - who reversed almost all of Ms Truss’s tax cuts - will keep his job in the new cabinet and is scheduled to set out his economic plan for tax and spending on 31 October.
Good news … 
, none of us what to see our country go under because of their stupidity and greed, so good news 
Phew!
