Sterling was last up 0.15% at $1.3451, rising after falls in the last three sessions

Sterling rose against a broadly weaker dollar on Tuesday after John Healey was appointed as Britain’s new finance ​minister, with investors awaiting latest signals on the government’s ‌fiscal policy.

Sterling was last up 0.15% at $1.3451, rising after falls in the last three sessions. It was also stronger on the euro, which was down ​0.08% at 84.92 pence.

Healey, a former defence secretary, will ​now have to find more money to invest in key areas ⁠like defence and speed up a slow economy while reducing ​the welfare bill, all while fulfilling new Prime Minister Andy Burnham’s ​pledge to stick within the fiscal rules.

With Andy Burnham now installed as the new Prime Minister, and the speculation over Chancellor ending with the unexpected ​appointment of John Healey, the uncertainty facing gilts switches from political ​to policy, said Citi strategist Jamie Searle.

British borrowing costs rose on Monday and ‌sterling ⁠dropped as investors fretted over whether Burnham’s early remarks on becoming prime minister suggested he would adopt a looser fiscal policy.

Yields on UK 10-year gilts dropped one basis point to 5.025% on Tuesday.

Stabilisation ​in the bond ​market is needed ⁠for the pound to fully regain its strong momentum, Francesco Pesole, strategist at ING, said.

The UK currency ​was little changed in early trading after the release ​of ⁠latest UK economic data and the latest government borrowing figures.

British annual wage growth held at 3.4% in the three months to May, matching ⁠economists’ ​forecasts.

UK public borrowing dropped to £16 billion ​in June, driven by stronger tax receipts and weaker spending, including lower inflation-linked debt ​payments.