Trading Price Of UK Pound Fell As New Prime Minister Fired Kwarteng

In the latest trading market, the trading price of the pound experienced a significant plummet. The value of the British pound has recorded a drop while the bonds of the UK government have continued rallying.

With the rally recording an extension, the value of the pound has moved higher. Another reason behind the drop in the value of the pound was the dismissal of Kwasi Kwarteng by the Prime Minister.

UK Prime Minister Fired Kwarteng

Kwasi Kwarteng, the Chancellor of the Exchequer has been removed from his position and role by Liz Truss, the prime minister of the United Kingdom.

Following the dismissal, Kwarteng would be leaving behind the programs such as the tax cuts they were working on that were left unfunded.

It was just recently when Kwarteng had flown back to the United Kingdom from an autumn meeting that they had held with the International Monetary Fund (IMF).

Kwarteng was representing the government of the United Kingdom and the other party was the IMF. In the meeting, Kwarteng was to lay out the entire plan of the government for introducing the biggest tax cuts.

As per reports, the government of the United Kingdom has been aiming to introduce the biggest tax cuts in the 50-year history of the United Kingdom’s politics.

However, the senior fund officials of the United Kingdom were completely against the policy and were constantly criticizing it.

Dismissal Confirmed via Twitter

Kwarteng recently tweeted confirming her dismissal and even shared a picture of the resignation letter. She confirmed she has accepted the request from the Prime Minister to step down from her post.

It has been confirmed that Truss had decided to replace Kwarteng with Jeremy Hunt. He was previously the Health Secretary who was also serving as the Foreign Secretary.

The people familiar with UK politics know that Jeremy Hunt is a long-time friend of the Prime Minister of the United Kingdom.

Price Action of the Pound

The latest trading session of the British pound showed that it lost 1.1% in value. Following the dip, the British pound has fallen to $1.1204.

Then come the yields on the bonds from the United Kingdom government that are still experiencing a plunge. This is because many perceive that under the new Chancellor, the requirement would be scaled back.

It is still very alarming for UK politics that it is the fourth time in a few months that a Chancellor has been replaced by a new one.

According to market analysts, the value of the pound may continue plummeting as the inflation rate in the country has reached almost 10%.