Sterling rallied on Thursday, breaching the $1.35 mark for the first time in several weeks in afternoon trading.
The pound was up by just over 1% against the dollar as at 15.57 GMT, trading at $1.354.
Rising optimism surrounding Brexit talks continued to buoy the pound amid reports that an outline agreement on the so-called divorce bill and the Irish border were close.
Sterling also traded 0.27% higher against the euro, at €1.134.
The UK 10-year gilt yield however were down 0.75%, at 1.331, with the yield having increased relatively sharply on Wednesday. Bond prices move inversely to yields.