The British pound has surged above $1.36, its highest level since the results of last year's Brexit. Sterling strengthened by more than 1.6 per cent to hit $1.3616, its highest since 2016. It also climbed 1.3 per cent against the euro. The pound had already recorded its best day since April, after investors brought their bets forward on when the Bank of England would raise interest rates after it signalled it would do so in the “coming months”.
The currency built on gains after BoE policymaker Gertjan Vlieghe said, “The appropriate time for a rise in Bank might be as early as in the coming months.” British government bond yields soared for a second successive day, with two and 10-year bond yields up almost 10 basis points each.
