The pound climbed against its major counterparts in the European session on Monday, as new finance minister Jeremy Hunt announced that the government would withdraw almost all tax measures of economic plan to support fiscal sustainability.

The Chancellor announced that the basic rate of income tax would remain at 20 percent for the time being.

The plan to cut dividend tax by 1.25 percentage points from April 2023 has been scrapped.

The government would not proceed with the introduction of a new VAT-free shopping scheme for non-UK visitors to Great Britain.

The Chancellor said that these changes would enable the government to raise around 32 billion pounds a year.

The pound touched 168.40 against the yen, its highest level since June 9. The pound may test resistance around the 1.23 region.

The pound rose to 1.1335 against the franc and 0.8620 against the euro, off its prior lows of 1.1234 and 0.8686, respectively. The currency is likely to challenge resistance around 1.22 against the franc and 0.84 against the euro.

The pound was higher against the greenback, at 1.1331. The pound is seen facing resistance around the 1.23 level.

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