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Rachel Reeves quits as UK chancellor, pound slides below 1.3450
After the resignation, the UK 10-year gilt yield rose toward 5.050%, while GBP/USD fell 0.24% to around 1.3420 as investors reassessed UK fiscal policy.
FXStreet reports that the UK entered a new period of political uncertainty after Rachel Reeves stepped down as Chancellor of the Exchequer as part of Prime Minister Andy Burnham's first cabinet reshuffle.
Reeves said on social media that serving as chancellor was the privilege of her life and wished her successor and the new government the very best of luck. Several UK media outlets reported she declined an alternative cabinet role before returning to the backbenches, and there was no immediate announcement naming her replacement at the Treasury, adding to uncertainty around the government's economic strategy.
In market reaction, FXStreet said the yield on the UK 10-year Gilt climbed to near 5.050%, reflecting a higher risk premium. At the same time, GBP/USD remained under pressure, falling 0.24% to trade near 1.3420.
FXStreet added that the pound's weakness came as investors assessed developments in the US-Iran conflict and that upcoming attention would turn to the UK employment report scheduled for Tuesday.
Latest closeGBP/USD 1.348 ▼0.5%