Wed, 02 Jul 2025

Wed, 02 Jul 2025 Borrowing costs jump and pound falls on Chancellor's tears

Markets react after a tearful appearance by Rachel Reeves in parliament after welfare reform u-turn.

* Sterling fell by 1% against the dollar
* Borrowing costs soared in one of the biggest single-day moves since October 2022
* The rise eased slightly after Number 10 tried to quell rumors that Reeves might be replaced, but then increased again
* The pound's strong run against a weaker US currency came to an end
* The FTSE 250 closed down 1.34%
* Borrowing costs rose by one of the biggest single-day moves since October 2022
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