Pound Rebounds, UK Borrowing Costs Drop as Sunak Becomes Prime Minister

British Prime Minister Rishi Sunak waves to members of the media after taking office outside Number 10 in Downing Street, London, on Oct. 25, 2022. Dan Kitwood/Getty Images

The value of the pound has rallied back to its highest levels since before last month’s crash and the cost of UK government borrowing has decreased, as financial markets react to Rishi Sunak’s appointment as the new UK prime minister.

Sterling lifted 1.9 percent higher to 1.149 against the U.S. dollar after the new prime minister started to confirm appointments to his new cabinet.