Sterling rises to its highest level against the dollar for more than six weeks at more than $1.16

The pound rose to its highest level against the dollar for more than six weeks as worries about the strength of the US economy weighed on the greenback. 

In a boost to Rishi Sunak on only his second day as Prime Minister, sterling reached $1.1638, its strongest point since September 12. 

The pound has gained more than 10pc since falling as low as $1.0386 in the wake of last month’s mini-Budget under Sunak’s predecessor, Liz Truss.

The latest rally came as Sunak and Chancellor Jeremy Hunt pushed the Halloween Budget due on October 31 back to November 17 as they ponder how to balance the books. Financial markets have broadly welcomed the appointment of Sunak and Hunt – giving sterling a boost in the process. 

However, much of the movement on the currency markets in recent days has been driven by the dollar, which having soared for much of this year is showing signs of weakness.