British pound jumps on reports of more budget u-turns

British pound jumps on reports of more budget u-turns

The British pound jumped against the dollar Thursday on media speculation the government was mulling more U-turns over its debt-fueled budget, but the reports were swiftly denied by Downing Street.

Sterling rebounded 1.5 percent to $1.1277 on reports that officials were discussing how to back away from costly tax-slashing measures that sparked markets turmoil.

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However, a spokesman for Prime Minister Liz Truss insisted that there would be no more U-turns over the controversial mini-budget.

“The position has not changed,” he told reporters.

Finance minister Kwasi Kwarteng last month slashed tax and froze energy prices in a bid to boost Britain's battered economy and ease a cost-of-living crisis.

The announcement had sent shockwaves through markets as investors fretted over potentially eye-watering levels of debt.

And it forced the Bank of England to jump into bond markets to help protect financial stability.

Truss is facing the political heat just over a month into office, with one prominent insider in her ruling Conservative party saying some MPs were actively considering a push to replace her.

She tried to calm nervous MPs at a closed-door meeting on Wednesday night where one accused her of trashing the Tories' record in