The British Parliament is due to appoint its third prime minister in less than two months, and former finance minister Rishi Sunak has now been tasked with leading a country facing difficult economic conditions.
The former millionaire hedge fund manager took the lead after his only rival, Penny Mordaunt, failed to convince enough lawmakers to back her name on the ballot.
Sunak's biggest rival was former Prime Minister Boris Johnson, who withdrew his name from the race on Sunday, saying he could no longer unite the party. Sunak was finance minister under Boris Johnson but stepped down in July, citing disagreements with his boss over economic policy.
Leadership news had a big impact on the British pound.
Sunak will replace former prime minister Liz Truss, who stepped down after 44 days in office. She was forced to resign after her plan for unwarranted tax cuts caused a massive sell-off of British assets.
According to some political analysts, Sunak expected to announce significant budget cuts in an attempt to restore Britain's financial reputation. The cuts will come as the country continues to slide into recession with slower economic growth and higher food and energy prices.
Many market analysts say that Sunak will face serious problems in the coming weeks and months.
Rishi Sunak will become the first prime minister of the United Kingdom with Indian heritage. At 42, he will also be one of the youngest prime ministers in more than a century.
Not all British politicians support the new prime minister. Members of the Labour Party repeated their call for a general election, as did the Scottish National Party and the Liberal Democrats.