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According to Reuters, the currency was up 0.2 per cent to $1.5443 against the dollar at 11:24 GMT.
On Tuesday, the pound dropped by around one per cent against its US counterpart after governor of the Bank of England Mervyn King said that the quantitative easing programme could be reinstated if the economic recovery does not speed up.
It had made further gains earlier today, but these were cancelled out after policymaker at the Bank Adam Posen told Reuters Insider television that he supported Mr King's comments.
"If we have to, we will," he was quoted as saying, referring to the possibility of restarting the asset purchasing scheme.
Jeremy Stretch of Rabobank told the news agency yesterday that Mr King's comments indicate that the Bank's recent decision to halt the expansion of quantitative easing was "very finely balanced".
Posted by Clive Arneil
