The British pound and government bond prices rose on Thursday as the Prime Minister Liz Truss announced her resignation after a tumultuous six weeks in the job.
The British pound traded 0.5 percent higher against the dollar, reaching $1.13 as Ms. Truss read a short statement outside Downing Street. Ms. Truss said there would be a Conservative Party leadership election that would be completed in the next week and that she would remain as prime minister until her successor was chosen.
Bond yields, which move inversely to prices, fell. The 10-year yield, a measure of government borrowing costs, fell to about 3.76 percent.
But the moves in the market were muted. While the change brings a firm end to Ms. Truss’s tax-cutting economic agenda, it introduces even more political instability to Britain at a time when households and businesses are grappling with a fierce cost-of-living crisis. On Wednesday, data showed that the annual rate of inflation had topped 10 percent as food prices rose at their fastest pace in four decades.
