The pound rose towards a three-week high on Wednesday after Britain's main opposition party said it would try to introduce parliamentary legislation to prevent a no-deal Brexit.

Investors are concerned the next prime minister could put Britain on course for a no-deal divorce with the European Union and send the pound plummeting.

Frontrunner Boris Johnson, a eurosceptic, has said he would be willing to take the nation out at the end of October, even if it meant leaving without a deal.

The pound was up 0.2% at $1.2740, close to a three-week high of $1.2763 hit on Friday. It was flat against the euro at 89 pence

Sterling, which has been confined recently to a range of $1.26-$1.28, found some relief on Tuesday after British wages in the three months to April rose faster than expected.

Source : Reuters