Sterling stood at its highest in over a month early on Thursday, having outperformed its peers after the latest set of policy minutes from the Bank of England was less dovish than expected.
The pound climbed as far as $1.5080, while the euro slid to 71.20 pence, reaching levels not seen since mid-March. Sterling has since eased back to $1.5035, while the common currency remained pinned near the session low.
BOE policymakers appeared more focused on the prospect for higher inflation in the minutes, sparking a rally in sterling and a vicious selloff in gilts. The pound’s performance on Wednesday was its best in about a month and could signal the start of more sustained gains, analysts said.