The pound smashed through $1.40 as the rollout of Covid vaccines across the UK fuelled hopes of a strong economic recovery.
Sterling rose as high as $1.4035 – a level last seen in April 2018 – having fallen below $1.15 last year.
Confidence in the economy has been growing since the turn of the year after the UK successfully signed a Brexit trade deal with the European Union.
An impressive vaccine rollout programme, which has seen 16m people jabbed, has further boosted confidence.
Only Israel and the United Arab Emirates have been faster in rolling out the jabs. Analysts believe the pound could hit $1.50 before the end of the year, a level not seen since November 2015.
Neil Wilson, analyst at Markets, said: ‘The big question is, can the pound hit $1.50? The dollar would have to come off a bit and the UK would need some significant capital flows from international investors to make it happen.’
Against the euro, the pound was hovering close to 11-month highs above €1.15.
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