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According to Reuters, sterling was up on its US counterpart and also followed a similar route versus the euro.
And the news provider pointed out its rise against the dollar may be partly down to the Bank of England possibly increasing interest rates sooner than people expect due to inflationary pressures.
RBC analysts said in a note: "Although rate expectations are now unrealistically high relative to our forecast, there is every chance they will rise further if our expectation for the inflation data is correct."
Consumer price index figures are set to be released tomorrow and the RBC has forecast the levels will have risen by 3.6 per cent year-on-year.
This comes after the pound was down against the euro on Friday morning as the single currency rose to 84.99 pence.
Posted by Greg Secker
