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According to Reuters, sterling was up due to predictions that a rise in interest rates by the Bank of England may happen quicker than expected.
An inflation increase and larger UK yields have led to forecasts there might be a cash level rise as early as May, although the organisation is expected to keep the interest rate unchanged at 0.5 per cent when it makes an announcement at 12:00 GMT.
What's more, Adrian Schmidt, currency analyst at Lloyds Banking Group, pointed out the rise in the pound is partly down to the growing UK yields.
He added: "But we are sceptical because higher inflation is effectively a tax if it's not reflected in higher wages. We don't believe a rate rise is going to happen soon."
Yesterday morning saw sterling down against the dollar.
Posted by Greg Secker
