Pound rebounds in early Asia trading after Truss U-turn

The pound has edged a little higher against the dollar in early Asia trading, following PM Liz Truss’s partial reversal of her initial economic plan.

It had fallen to a record low against the dollar at the end of September, after the short-lived then chancellor Kwasi Kwarteng unveiled the biggest programme of tax cuts for 50 years.

Mr Kwarteng’s downfall, after just 38 days in the job, not only pushed the pound to almost parity with the dollar, but sent the cost of government borrowing and mortgage rates up and led to an unprecedented intervention by the Bank of England (BoE).

However, following the prime minister’s announcement on Friday that corporation tax would rise to 25% from April next year instead of keeping it at 19% as part of the initial mini-budget, sterling gained 0.6% to $1.1245 on Monday in trade in Asia.

Mr Kwarteng, was sacked on Friday with former foreign and health secretary…