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Sterling moved up to as much as $1.5917, which has not been achieved since November, leading to speculation it is on course to hit $1.60.
This comes after further rumours the Bank of England (BoE) might be set to up the interest rate - which currently stands at a record low 0.5 per cent - as early as June.
Jeremy Stretch, currency analyst at CIBC, said: "Short sterling (interest rate futures) have sold off as inflation pressures have been building and people are anticipating that price pressures will continue with [the consumer price index (CPI) figures] tomorrow."
Experts are predicting there will be a 3.3 per cent year on year rise in CPI data when the results are announced tomorrow - much higher than the two per cent forecast by the BoE.
Posted by Greg Secker
