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According to Reuters, sterling hit $1.6279 - its highest level since a November 5th peak of $1.6300 - against the dollar after the UK services purchasing managers' index figures were better than previously expected.
And this led to additional speculation that the Bank of England may be in a position to increase the current interest rate from its record low of 0.5 per cent.
Vicky Redwood, senior UK economist at Capital Economics, said people would be hesitant at this stage to announce that recovery is on track once again.
She added: "With so much uncertainty about the underlying pace of growth, we still doubt that the MPC will want to risk tightening policy prematurely."
This comes after the pound advanced by 0.4 per cent yesterday morning against its US counterpart following better than expected results for the UK construction sector purchasing managers' index.
Posted by Greg Secker
