The pound advanced the most since July as Prime Minister Theresa May said British lawmakers will get a vote on the final deal for the nation's exit from the European Union.
The currency strengthened as May made the announcement in a speech laying out the government's Brexit strategy, which involves pulling out of the EU's single market. Sterling is rebounding from Monday's biggest decline in a month that reported the main substance of May's speech without the additional detail on the parliamentary vote.
"The fact that the UK Prime Minister Theresa May will put a final Brexit deal to vote in both Houses of Parliament is positive for sterling," Athanasios Vamvakidis, a London-based strategist at BofAML, said in e-mailed comments. "In order for the parliament to approve it the deal has to be good."
The pound climbed 1.6 per cent, the most since July 12, to $1.2237 as of 12.12pm in London. The currency fell to as low as $US1.1986 ($1.63) on Monday.
Bloomberg
Bloomberg
