The British pound held firm in early Asian trade on Thursday, after making its biggest gains in seven months the previous day, following comments from the European Union's chief negotiator offering Britain close ties after Brexit.
The pound surged as fears that Britain could go through a hard Brexit eased after Michel Barnier signalled an accommodative stance towards London in ongoing talks.
Barnier said that the bloc was prepared to offer Britain a partnership, though no “single market a la carte”, which improved risk sentiment.
Sterling rose to a four-week high of $1.3039, extending its gains after surging more than 1.2 percent overnight, the largest daily gain since Jan. 24.
The dollar index against a basket of six major currencies struggled near a four-week low of 94.434 touched on Tuesday, dragged down by the pound's rally.
Source : Reuters