(Bloomberg) -- The British pound held its decline versus the dollar after two members from Boris Johnson’s cabinet announced their resignations, dealing the latest blow to the UK prime minister.

UK Health Secretary Sajid Javid said in a tweet that he quit Johnson’s government and that he’s lost confidence in the prime minister. Chancellor of the Exchequer Rishi Sunak also announced his resignation on Tuesday.

The pound-dollar pair held a decline of 1.4% right after the news, after earlier dropping as much as 1.8% to 1.1899, the lowest since March 2020.

“When your Chancellor and Health Secretary both resign – it’s only a matter of time before a Prime Minister is out,” Jordan Rochester, a strategist at Nomura International Plc, wrote in a note Tuesday, adding the cabinet resignations likely won’t impact the pound in the short term but the political instability may do so in the next few weeks.

The UK currency has been under pressure since late 2021 and is currently trading near the weakest level since the onset of the pandemic. 

For Viraj Patel, macro strategist at Vanda Research, the loss of two key cabinet members “prolongs UK political uncertainty and policy impasse.” 

“GBP really isn’t a currency we would touch right now - neither from fundamental, policy and now political perspective,” said Patel, adding he would place bullish bets on the euro and swiss franc versus the pound. 

(Adds analyst comments, background throughout.)

©2022 Bloomberg L.P.