By Charlie Conchie
The pound recovered its losses against the dollar for a short time this morning as moves by the Bank of England in recent days helped calm the fallout of Kwasi Kwarteng’s tax cutting mini budget last week.
Sterling rose 0.8 per cent on the dollar to $1.203 after the market opened in Asia, pushing the value back to levels seen before Kwarteng sent markets into a spin and the value of the pound plummeting last week.
The pound is currently trading at around $1.112 as of 7:30am.
Analysts said today Threadneedle Street’s move to step in with a £65bn bond-buying programme to steady gilt markets, as well as a decision by the Office for Budget responsibility to bring forward its assessment of the government’s economic plans, had boosted confidence.
“The BoE actions in the gilt markets and the OBR coming forward with a more timely assessment of the economic forecasts have given markets a short-term confidence boost,” Mansoor Mohi-uddin, chief economist at Bank of Singapore, told the Financial Times
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