The pound rose initially in the immediate aftermath of the statement before settling back at around $1.12.
Before she delivered her statement, one analyst said the markets were “watching in a kind of stunned, open-mouthed horror” at political events.
Massive challenge for Truss successor to unite party
It’s astonishing, just three and a half months ago i was standing in this very spot looking at a lectern in the same spot as this one reporting on the resignation of the previous prime minister from the Conservative leadership.
Here we are just 100-odd days later and his successor, Liz Truss, performs that same walk and utters a very similar set of words.
If you thought yesterday was chaotic, the chaos is going to deepen, and out of the next few days there’s going to emerge yet another prime minister.
The Conservatives hope they can dredge a name out of their ranks amongst themselves to avoid a contest among Conservative Party members in the country which would take several months in order to present yet another leader to the country.
That new prime minister, if they can find someone who can unite the party – and that is a massive if – will then face a massive challenge around legitimacy.
But we should remember, constitutionally, we live in a parliamentary democracy and if a new prime minister can command a majority in the House of Commons, they have the constitutional right to serve until the next general election legally has to happen.
-BBC,The Guardian,Getty Images