Sterling rose half a per cent to a 2-1/2 week high on Monday, with weekend news on the progress of Brexit negotiations interpreted as mildly positive for the British currency.
Britain will submit proposals on how to settle its divorce bill with the European Union before an EU summit next month and is expected to negotiate hard, finance minister Philip Hammond had aid on Sunday.
The pound rose to a high of $1.3272 in early trades on Monday, its strongest since November 2. Against the euro, it hit a one-week high of 88.75 pence.