Investors in British assets in general reacted positively to the news about the early general elections in the UK on June 8.
The pound reached $1.2646 by noon, its highest level since last December.
Against the euro the sterling inched up by 0.47 per cent to €1.861 by midday.
British Prime Minister Teresa May announced on Tuesday that early parliamentary elections will be held on June 8. Previously it was assumed that the next elections in the country will be held only in 2020. According to May, the UK needs certainty, stability and strong leadership, and therefore it is necessary to hold early elections.