SINGAPORE/LONDON—Sterling rose on Monday after Britain reversed a plan to cut the highest rate of income tax, while the yen weakened past 145 per dollar, near the level where Japanese authorities intervened last month.
The pound touched $1.128 after The UK’s prime minister Liz Truss Monday made a dramatic u-turn on plans to cut taxes for the highest earners, its highest level since Sept. 22, the day before British finance minister Kwasi Kwarteng sent markets tumbling with a new “growth plan” to cut taxes and regulation, funded by vast government borrowing.
Having pared gains, sterling was last up 0.2 percent at $1.1188.
“We get it, and we have listened,” Kwarteng said regarding the reversal of a plan to cut the 45 percent tax band, one contentious part of the package of measures which drove sterling to an all-time low of $1.0327 and sent gilts spiraling, prompting the Bank of England to step in….