The pound jumped against the dollar as data showed Britain's economic recovery picked up pace in the second quarter of this year.
The Office for National Statistics (ONS) said the economy grew by 0.7 per cent between April and June, from 0.4 per cent in the previous quarter, and in line with economists' expectations.
It means that the annual rate of growth rose to 2.6 per cent, compared to 2.4 per cent in the first quarter of 2015.
It also marks the UK economy's 10th successive quarter of expansion – meaning it is experiencing its best run of growth since 2008.
Services output, which accounts for around 75 per cent of gross domestic product, increased by 0.7 per cent. Industrial production rose by one per cent, construction growth was flat, and agriculture fell by 0.7 per cent.
This is a preliminary estimate using around 44 per cent of the available data used to calculate the final figure, and so it can be subject to subsequent revisions.
Chris Williamson, chief economist at Markit, pointed out that exports continued to be a weak spot.
PMI data for May showed one of the weakest expansions in business activity seen over the past two years, with the slowdown spreading from manufacturing and construction to services. June data are updated later this week and will be closely watched for clues as to the economy’s momentum heading into the second half of the year.