The pound jumped against the dollar and the euro on Monday after reassuring remarks from the British government. The plan of the new British finance minister Jeremy Hunt aims to reassure the markets by ensuring the stability of public finances.

Around 09:00 GMT (11:00 CET), the pound earned 0.81% at $1.1263 and 0.64% at 86.46 pence for one euro. The British bond market was also under scrutiny, as the Bank of England (BoE) stopped buying long-term bonds as planned on Friday.

The yield on 30-year bonds fell to 4.49% and that on 10-year bonds fell to 4.5%, a sign of sustained demand despite the absence of the BoE on the market. Analysts now expect the BoE to raise its key rate by 0.75 percentage points in November and December, according to a Bloomberg consensus, from increases of 0.25 and then 0.50 points since the start of the year.

After several weeks of sudden movements, the pound is trading at about the level prior to Mr. Kwarteng's announcements, when it traded for $1.1261.