UK Chancellor Rishi Sunak wouldn’t accept demotion, allies warn PM Boris Johnson – The Times

Early Monday morning in Asia, The Times portrays the UK’s political jitters while citing the latest rift between Chancellor Rishi Sunak and PM Boris Johnson.

The news said, “Allies of Rishi Sunak warned Boris Johnson that he would “lose direction completely” if he sacked the chancellor as they hit back at reports that the prime minister had considered demoting him.”

The piece cites a leaked letter from Finance Minister Sunak seeking cancellation of the travel restrictions as the key concern for the latest tussle. The Sunday Times said, UK PM Johnson even suggested demoting Sunak to the Health Secretary.

“An ally of Sunak said, however, that he would opt for the backbenches over demotion. They said that such a move would derail Johnson’s administration and risk provoking a leadership contest,” added The Times.

FX implications

The news joins the broad US dollar strength to weigh on the GBP/USD prices, down 0.10% around 1.3860 by the press time.

Read: GBP/USD refreshes weekly lows below 1.3850 on USD strength