Sterling gained on Monday after registering three consecutive weeks of losses as investors waited for the outcome of Brexit talks between Britain and the European Union.
A split in Britain’s opposition Labour Party - with seven politicians quitting on Monday in protest against Jeremy Corbyn’s leadership - will likely weigh on the pound as the move increases political uncertainty, according to MizuhoInternational.
Meanwhile, Prime Minister Theresa May is leading a last-ditch diplomatic drive to persuade EU leaders to save her Brexit agreement as she faces a rebellion from Cabinet ministers who want to stop the UK leaving without a deal.
The pound climbed 0.3 percent higher at $1.2929. Against the euro it rose 0.2 percent to 87.30 pence.
Source : Reuters