The pound has sunk to a 2-year low against the dollar as the UK government faced monumental disruption from a series of resignations by senior conservatives.
Boris Johnson was again found to have been loose with the truth and the latest debacle proved a bridge too far for 12 members of his government.
The pound sank on the news and traded as low as $1.1900.
“The pound was already sliding before the UK Government was plunged into chaos, yet the resignations of Rishi Sunak and Sajid Javid have simply added to the currency’s woes as it shows a cabinet in disarray,” says Russ Mould, investment director at AJ Bell.
Analysts also pointed to the terrible timing of the resignations as it coincided with a dismal report from the Bank of England pointing to further economic strife for the UK.
“The Chancellor’s resignation came on the same day as the Bank of England’s latest financial stability report, which warned that the economic outlook for the UK and globally has deteriorated with concerns UK households and businesses will struggle to pay outstanding debts,’ said Mike Owens, UK Sales Trader at Saxo Markets.
