The value of the pound has risen against major currencies after Andrea Leadsom quit the Conservative Party leadership contest.
Mrs Leadsom had been up against Home Secretary Theresa May in the race to succeed Prime Minister David Cameron.
Against the dollar, the pound had fallen below $1.29 earlier, but then rebounded as reports circulated that Mrs Leadsom was to leave the contest.
In early afternoon the pound was up 0.2% against the dollar at $1.2981.
Against the euro, sterling was also 0.2% higher at €1.1745.
The pound still remains well below levels reached before the referendum, when it had been trading at around $1.50.