By
The pound hit its highest level since late 2009 in Asian trade of $1.6838 and was last trading at $1.6830, up 0.2 percent on the day. Sterling was also helped by a weak dollar.
The euro was slightly down against sterling, trading at 82.24 pence, having hit a one-month low 82.2155 pence earlier in the day.
The pound's broad gains pushed sterling trade-weighted index to a 5-1/2 year high of 86.5, data from the Bank of England showed.