Sterling has climbed above $1.30 in overnight trading in Asia as traders continued to feel upbeat following signals that the Bank of England might raise rates.
Earlier this week, the Bank of England governor Mark Carney indicated he would support dialling down the bank's monetary stimulus if the UK economy stayed on track.
Speaking at a European Central Bank forum in Sintra, Portugal, Carney said "some removal of monetary stimulus is likely to become necessary" if investment and wages strengthen.
At time of writing, the pound was up 0.07 per cent against the dollar at $1.3016, just short of the $1.3036 it reached in the middle of May, which was the highest level seen since the end of September.
The comments from Carney came after sterling was boosted by comments from the Bank of England's chief economist Andy Haldane, who said the central bank should withdraw its Brexit vote stimulus "later in the year".
“A partial withdrawal of the additional policy insurance the MPC put in place last year would be prudent relatively soon, provided the data come in broadly as expected in the period ahead," he said.
“Certainly, I think such a tightening is likely to be needed well ahead of current market expectations.”