British Pound Rises Vs. US Dollar, Euro after Prime Minister Quits

The British pound regained some lost ground after Prime Minister Boris Johnson announced he would be replaced as the United Kingdom’s head of government yesterday, Thursday, July 7. The sterling rose in value against the US dollar and the euro.

We want to keep our followers posted on the latest foreign exchange-related developments. If they are holders of British pound units, we believe sharing this news on our portal will benefit them today.

According to the forex report posted online by British online newspaper The Independent, the British pound gained over 0.4 percent to US$1.20.

Additionally, this official currency of the United Kingdom traded higher on the update of Johnson’s resignation, resulting in itself becoming 0.4-percent stronger at 1.174 euros.

This development reportedly happened as traders priced in the prospect of a culmination of months of chaos under the now-former prime minister’s leadership.

As the British pound rose against the US dollar and the euro, economists viewed Johnson’s resignation from being the United Kingdom’s head of government as boosting the country’s economy.

Johnson confirmed his departure from No. 10 Downing Street after the members of the British Parliament and ministers made clear his position was untenable.

He had dismissed Levelling Up, Housing, and Communities Secretary Michael Gove last Wednesday evening, July 6, after the latter urged him to quit earlier in the day. Gove told Johnson that the Conservative party would not support him.

The former prime minister’s resignation also happened after he hemorrhaged support among his ministers and members of Parliament or MPs. Over 50 MPs have vacated their government positions or party roles since Tuesday night, July 5.

Additionally, the departures of Health and Social Care Secretary Sajid Javid from the Cabinet and Chancellor of the Exchequer Rishi Sunak triggered the mass exodus.

Johnson had sought to defy his detractors and continue in office, despite warnings from Cabinet colleagues that his decision to stay was unsustainable. However, the resignations carried on.

Johnson reportedly spoke to Conservative 1922 Committee Chairman Sir Graham Brady about his decision to quit his job as prime minister, per a No. 10 source. He will remain in his post until a successor is in place.

Moreover, Johnson’s replacement is anticipated to come by the time of the Conservative Party conference in October. We are pleased for British pound holders after learning about this forex report.

We think they will get more value for their money. We are also glad that the United Kingdom’s Government is on its way to rearrangement after considerable controversies involving Prime Minister Boris Johnson.

We wish the people of the United Kingdom the best as they will soon have a new head of government.

We also hope Mr. Johnson’s replacement will be helpful to the country’s economy and the British pound, aiding the majority amid these high-inflation and recessionary times.

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