MADRID, 20 Oct. (EUROPA PRESS) -
The sterling exchange rate and the 10-year UK sovereign bond yield in debt markets have reacted positively after the announcement of the resignation of British Prime Minister Liz Truss.
In its cross against the dollar, the pound has reached a maximum of 1.1306 'greenbacks', compared to the cross of 1.1219 dollars that it had registered at the close of Thursday.
However, the rebound has lasted just a few minutes, since the exchange rate between the two currencies has stood at 1.1262 dollars for each pound, a level close to the cross registered on September 23, when the United Kingdom presented its tax cut plan.
The slight rebound this Thursday, however, does not reverse the downward trend that the British currency has been experiencing since May 2021, when it was exchanged for 1.4 dollars.
On the other hand, the yield registered by the British bonds with a maturity of 10 years in the secondary debt markets has also rebounded slightly this Thursday after the resignation of Truss.
Specifically, the interest rate offered to investors stood at 3.8781% at the close of Wednesday, while at the opening of this Thursday it reached 3.9617%. Although the intraday high after the mid-session had reached 4.0225%, after the announcement of the resignation it fell to 3.7756%.
A few minutes after the resignation, the performance has rebounded slightly to around 3.8210%, still above the performance recorded on September 23. In the last year, the interest of the 10-year bond has shot up by 3 percentage points.
"It is the best decision to keep the UK in a stable economic condition," Truss said in an appearance at Downing Street.