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The pound rose to $1.6100 - its highest since January 29th - this afternoon as the dollar-index traded at a year-to-date low of 76.154, Reuters reports.
The news provider noted that the reason for today's sterling rise was down to comments from Federal Reserve Chairman Ben Bernanke, who pointed out that low inflation suggested there was a requirement for more action within the economy.
He added that there is a need for further easing of monetary policy, adding that policymakers are deciding how aggressive to be.
Moreover, this comes after the pound hit an eight-month high against the dollar yesterday when it rose to $1.6056 after increasing by more than one per cent to a high of $1.6067 yesterday morning.
This led Geraldine Concagh, economist at AIB Group Treasury in Dublin, to state that the movement "adds to the case for broad-based dollar weakness".
Posted by Clive Arneil
