The value of the pound has fallen sharply in the past half an hour after Kwasi Kwarteng confirmed he is no longer chancellor. The pound has already been dipping on uncertainty over Britain's recent controversial budget.
Sterling is now back below $1.12, trading 1.3 per cent lower than it was. The finance minister confimed that he was sacked by Prime Minister Liz Truss rather than choosing to leave.
Pound falls 1.4 per cent on abrupt exit of Kwarteng
On news of the chancellor's sacking, Sterling fell as much as 1.4 per cent against the US dollar to below $1.12. It has since rallied slightly.
British finance minister Kwasi Kwarteng flew back one day early from a key IMF gathering in Washington, stoking speculation of another U-turn over his debt-fuelled measures that sparked recent markets turmoil.
The pound dipped before the Bank of England ends later Friday its emergency bond-buying policy that sought to stem the turbulence.
Pound pares losses after Jeremy Hunt named replacement
The pound has rebounded against the dollar after slumping to below $1.12 as currency markets digested the sacking and Jeremy Hunt, the former Health Secretary, was announced as Kwarteng's replacement.
The pound remains down on overnight highs of around $1.135 amid uncertainty about the government's plans for a U-turn on its mini-Budget.
The Prime Minister also confirmed a reversal in a series of pledges made in the chancellor's mini-Budget, including abandoning planned cuts to corporation tax.
- with inputs from Agencies