The pound experienced significant gains on Monday, reaching a nearly four-week high against the euro and topping a one-year peak against the yen. This surge occurred as political developments unfolded in both France and Japan, affecting the currencies of each nation.

In France, Prime Minister Sebastien Lecornu's abrupt resignation led to a drop in the euro, pushing it down to its lowest against the pound since September 18. The shake-up raised concerns about President Emmanuel Macron's next move, which could influence French interest rates and impact financial markets, especially the CAC 40.

Meanwhile, in Japan, the yen weakened sharply following Sanae Takaichi's win as leader of the ruling party. Her stance on expansive economic policies signaled a delay in potential rate hikes by the B

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