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Sterling rose 1.1 per cent to $1.6373 versus its US counterpart, while also climbing against the euro and the yen.
The currency is now at its highest against the greenback since October of last year, with the rising FTSE and renewed economic confidence prompting some investors to begin purchasing riskier assets.
Daragh Mayer of corporate and investment bank Calyon told the news source: "The pound's strength has been concentrated largely against the weakening dollar."
The US currency has dropped against a number of its global counterparts, falling to levels not seen since December 2008 in some cases.
Stock market trading in London has also been buoyant during the morning session, with mining companies Rio Tinto, Xstrata, Antofagasta and Vedanta Resources all climbing as the FTSE 100 index rose 1.4 per cent - or 61.79 points - to 4,479.73 at 12:52 BST.
