By Renae Dyer and Miriam Mukuru
Sterling flirted with 2026 lows against the dollar while yields on U.K. government bonds edged higher after Prime Minister Keir Starmer announced his departure on Monday.
Starmer faced pressure from Labour lawmakers to make way for Andy Burnham to replace him. Burnham secured a seat in parliament by winning a special election last week, creating a path for him to challenge Starmer.
Sterling fell 0.3% to $1.3192 after the announcement, approaching its 2026 low of $1.3156 reached in March, according to LSEG data. The euro rose 0.2% to 0.8674 pounds, having hit a one-month high of 0.8687 overnight.
Ten-year gilt yields rose 1 basis point to last trade at 4.850%, Tradeweb data showed.
