British pound battered as Boris Johnson loses key ministers – The National

British pound battered as Boris Johnson loses key ministers – The National

The British pound held its decline versus the dollar after two members of Prime Minister Boris Johnson’s Cabinet announced their resignations, dealing the latest blow to the UK leader.

The pound-dollar pair held a decline of 1.4 per cent right after the news, after earlier dropping as much as 1.8 per cent to 1.1899, the lowest since March 2020.

“When your chancellor and health secretary both resign — it’s only a matter of time before a prime minister is out,” Jordan Rochester, a strategist at Nomura International Plc, wrote in a note on Tuesday and added that the Cabinet resignations are unlikely to affect the pound in the short term but the political instability may do so in the next few weeks.