Sterling Steadies Amid Healey's Fiscal Policy Debut

UK finance minister John Healey's first major economic speech has had a modest impact on sterling, which rose 0.14% against the dollar to $1.3573 and held broadly flat versus the euro.

The pound fell sharply against the yen, however, dropping 0.8% to its lowest level since February at 209.41 yen.

Healey's speech outlined greater city region powers to attract private investment and reaffirmed fiscal discipline, but offered little new guidance for sterling direction.

Analysts say that tension between advancing Prime Minister Andy Burnham's priorities and preserving fiscal discipline is creating unease in the market, which could tilt the risk-reward balance against sterling.