LONDON: Sterling extended gains to 1 percent against the euro on Tuesday as Bank of England chief Mark Carney defended his conduct around the Brexit referendum and said the Bank would be able to deal with any fallout from the vote.
Speaking to lawmakers, Carney also added there is a "higher bar" in drawing conclusions about the economy due to substantial uncertainty stemming from the Brexit referendum.
Some traders said Carney sounded far more measured than in previous statements on Brexit, cooling nerves in the market over his position and the extent of risks to the economy.
Sterling, already well up on the day before Carney spoke, was up 0.7 percent at $1.4601, and traded at 76.62 pence per euro, close to 3-month highs hit last week. Traders said automatic stop-loss orders had been a factor helping the currency.
A poll overnight showed the "Remain" camp was well ahead over their "Leave" rivals with a month to go before the vote on Britain's future in the European Union.
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