LONDON, Oct 25 (Reuters) – Sterling rose on Tuesday, supported by improved risk sentiment as Rishi Sunak became Britain’s prime minister, while the euro steadied ahead of an expected rate increase by the European Central Bank (ECB) on Thursday.
The U.S. dollar edged up but was not far from its weakest level in October amid signs that Federal Reserve rate hikes are slowing the world’s biggest economy.
Rishi Sunak became Britain’s third prime minister in two months on Tuesday, tasked with tackling a mounting economic crisis and a warring political party.
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British government bonds recovered further and the 20-year gilt returned to a level last seen on Sept. 23, the day former prime minister Liz Truss’s fiscal plan triggered a collapse in sterling assets.
Sterling edged toward this month’s highs, up 0.4% at $1.1330 by 1112 GMT, but currency strategists expect the pound to remin…
