Sterling dips after Truss resigns, fragile yen weakens past 150 level - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Sterling edged lower on Friday as investors digested the news that British Prime Minister Liz Truss had quit after just six weeks in office, while the Japanese yen languished near a fresh 32-year low.

The pound dipped 0.21% to $1.1215 in early Asian trade, after a brief rally to a high of $1.1338 in the previous session after Truss announced her resignation.

Truss was brought down by an economic programme that sent shockwaves through markets and shattered the country’s reputation for financial stability. Meanwhile, the yen last bought 150.20 per dollar, after hitting a fresh 32-year low of 150.29 overnight.The battered currency first weakened past the symbolic 150 level late Thursday afternoon in Tokyo, but strengthened sharply from an interim low of 150.09 per dollar to 149.63 within a minute.

Data on Friday showed that Japan’s core consumer inflation rate accelerated to a fresh eight-year high of 3.0% in September, testing the Bank of Japan’s resolve to maintain ultra-low interest rates. Fed officials showed no signs of backing down from their hawkish rhetoric, with Federal Reserve Bank of Philadelphia President Patrick Harker saying overnight that the central bank is not done with raising its short-term rate target amid very high levels of inflation.

 

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