Published by Mark Smith-HalvorsenThe global foreign exchange market has reacted positively to chancellor George Osborne's inaugural Budget, which promised savings of £20 billion by the end of the coalition's parliamentary term.Sterling rallied as Mr Osborne delivered the Budget, with the currency climbing 0.5 per cent against the dollar yesterday (June 22nd), reversing earlier losses.Gilt markets were also reassured by the fiscal programme, which contained a plan to raise VAT to 20 per cent next year, while Mr Osborne also pledged cuts of up to 25 per cent in some government departments.All public sector staff also face a pay freeze, while child benefit support will also be scaled back.Mr Osborne described the Budget as inevitable and "tough but fair".Ian Stannard, senior currency strategist at BNP Paribas, told Reuters: "The market has taken the view that the Budget is tough enough to address the UK's fiscal position and sterling has rebounded as it should help keep the ratings agencies at bay."For more information on foreign exchange treasury services and risk management, visit our Corporate FX site