Pound claws back some losses as Theresa May takes over

Sterling climbed the most since three days before Britain’s EU referendum as home secretary Theresa May prepared to take over as the UK’s next prime minister, removing one layer of political uncertainty.

Sterling rose to its highest level in a week against the dollar as investors digested the implications of the new premiership on the UK’s negotiations with the EU over its withdrawal from the bloc.

Ms May is poised to take office by late this evening, replacing David Cameron after her only rival pulled out of the Conservative leadership contest on Monday. The FTSE 100 Index of shares touched an 11-month high.