Sterling rose above $1.3 on Wednesday on signs that British lawmakers will move to prevent a disorderly no-deal exit from the European Union.
With little time left until the March 29 Brexit deadline, there is no agreement in London on how or even whether it should exit the world's biggest trading bloc.
But Britain's opposition Labour Party said on Wednesday it was “highly likely” next week to back an amendment that could prevent a no-deal Brexit - which has long been seen as the worst-case scenario for the pound..
That lifted the pound 0.3 percent against the dollar and by 09:50 GMT to $1.3005, a 2-month high. It also rose for a third consecutive day versus the euro to 87.45 pence.