Sterling and gilts surge after Budget

Sterling has strengthened against the US dollar and euro on the back of today's emergency Budget, while gilts have also bounced.

The pound is 0.60% higher to $1.4846 and 0.72% up to €1.2073. When Chancellor George Osborne started presenting his Budget about four hours earlier, sterling showed a 0.25% loss against the dollar, and was up only 0.05% against the euro. Gilt have also climbed today, with the benchmark 10-year yield dropping 0.06% to 3.44%. Osborne says today's austerity measures are vital to aviod similar pressures currently being faced in the eurozone.