Pound hits highest level since Brexit vote

Sterling has jumped to its highest level against the US dollar since the Brexit vote.

The surge to almost $1.37 came after Bloomberg reported that the Spanish and Dutch finance ministers had agreed to seek a Brexit deal that kept the UK as close to the EU as possible.

The pound rose more than 1% to $1.3691, its highest level since 24 June 2016.

The currency had been trading at about $1.50 before the result of the referendum became clear.

Later on Friday, sterling gave up some ground to trade at $1.3666.

Mizuho analyst Neil Jones said the Bloomberg report was less significant than the sterling rally suggested.

"Just because two of the 27 members say this, it doesn't mean a softer Brexit will happen. I doubt it's as straightforward as that," he said.

Neil Wilson at ETX Capital said: "Although the comments came from just two ministers who don't necessarily speak for the Barnier team as such, there is a sense that the direction of travel for the UK with regards Brexit is a lot more positive than it was prior to December.

"We also have positive language around financial services and the prospect of Britain paying for market access."