Pound rises as UK rips up budget

The pound jumped more than two percent against the dollar as Britain's fourth finance minister in as many months sensationally ripped up a tax-cutting budget that had spooked markets.

Jeremy Hunt, who was appointed finance minister by Prime Minister Liz Truss on Friday, reversed large swathes of the 45-billion pound “mini-budget” that sparked unprecedented market turmoil in which the pound hit record lows and the Bank of England was forced to intervene.

Prime Minister Liz Truss is battling to stay in power after dramatically sacking Hunt's predecessor Kwasi Kwarteng.

Truss and Kwarteng had announced tax cuts, funded by debt -- causing the pound to hit a record low against the dollar and UK government bond yields to soar.