The pound is has hit its highest level against the dollar since late 2015 as traders react to signs the UK is likely to vote to stay in the European Union.
The pound is around 0.45% higher against the dollar at $1.4760 at around 10:45 a.m. BST (5:45 a.m. ET) on Tuesday. Here’s how it looks in the context of 2016:
Tuesday’s gain follows on from a huge relief rally for the pound on Monday, when the currency gained more than 2.4% against the dollar to have its best single session since October 2008.
Sterling is now above even where it was before the date of the UK’s European Union membership referendum was officially announced. That announcement sent the pound tumbling and set in motion the bearish speculation that has continued up to this week.
The pounds positive momentum is down to the campaign to leave the EU faltering with just 48 hours until the referendum. Over the weekend, two polls gave the Remain camp a lead while another put the two camps neck and neck. On Tuesday, an ORB poll for the Daily Telegraph added to Remain’s rosy polling outlook, showing a 53%-46% lead for staying in the EU.
The results are a stark contrast to multiple polls last week that gave the Leave camp as much as a 6 point lead, leading to fears that Britain was hurtling towards a Brexit. That sent the pound and British stocks tumbling.
On the day, the pound is also up 0.88% against the Japanese yen and around 0.22% higher against the euro to trade at €1.3015.
Britain will go to the polls to vote on EU membership on Thursday, June 23.