GBP/JPY climbs as investors react to UK Prime Minister Keir Starmer’s widely anticipated resignation following election losses.
The British Pound surged against the Japanese Yen, breaching 214.00 as UK Prime Minister Keir Starmer announced his resignation. The move follows Labour’s defeat in local elections, where Nigel Farage’s Reform UK gained ground, pressuring Starmer’s leadership.
Starmer’s departure was expected after Labour’s poor performance, with Manchester Mayor Andy Burnham emerging as a likely successor. The Yen remains under pressure, with USD/JPY near 161.95, a 40-year high, as Japanese authorities signal readiness to intervene in currency markets.
Markets reacted positively to the resignation, viewing it as a step toward political stability ahead of a leadership transition.