British pound rebounds after falling to an all-time low

The pound sterling rallied against the dollar on Tuesday after falling to a record low the day before in reaction to a plan to tax reduction and austerity from the conservative government of Liz Truss that raises fears of a recession.

"This is the calm after the storm"said Russ Mould, an analyst at AJ Bell, urging caution.

The British currency rose 0.65% up to $1.0758 around 2:30 p.m. GMT, moving away from the historical low reached the day before at $1.0350.

However, it continued to lose more than 4% compared to Friday, the day the conservative executive announced its measures against the cost of living crisis, consisting of a massive aid plan to pay energy bills, which will be financed with more debt public and will be accompanied by significant tax reductions.

Since the beginning of the year, the collapse of the pound against thedollarhas been more than 20%.

In a sign of the markets’ mistrust of British assets, the 10-year British government bond yield, which rises when demand falls, hit a new high since 2008 in the wake of the financial crisis, standing at 4.39%.

The short-term government borrowing rate in the UK exceeded that of Greece, another sign of investor concern about the UK economy.

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