Sterling extended its gains on Tuesday after British cabinet office minister David Lidington said a Brexit divorce deal was still possible in the next 24 or 48 hours.
Sterling jumped half a percent to as high as $1.2917 from around $1.2870 before Lidington’s comments.
The pound rose 0.2 percent versus the euro at 87.11 pence.
The British currency had tumbled on con signs a deal with Brussels for the terms of the UK’s exit from the European Union was still some way off.
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