Pound rises over $1.13 and stock market closes higher as Liz Truss resigns – as it happened

Sterling has gained a cent against the US dollar after PM quits, on hopes that UK economic and political turmoil could ease

• Liz Truss resigns as UK prime minister with new Tory leader to be in place by 28 October as calls for general election grow - live

After three days of falls, the interest rate on UK 10-year government bonds has risen close to 4% this morning, as the bond market watched the turmoil in Westminster.

This chart shows how 10-year gilt yields had already been climbing through September, but then surged after the mini-budget as investors were alarmed by unfunded tax cuts.