The pound sterling extended its rise until the beginning of the European session by recording the latest highs since May 2018, making it the best performing currency in today's trading session.
At the beginning of the European session, the currency reached a price level of 1.37000 against the US dollar before slightly reducing its gains afterwards.
The statement by the Governor of the Bank of England (BOE), Andrew Bailey, easing market concerns that negative interest rates would pose a problem for the banking sector has led to a pound sterling increase.
This has reduced investors' expectations that the central bank will implement interest rate easing below zero this year.
However, there are concerns raised by policymaker Silvana Tenreyo saying that lowering interest rates below zero could boost the economy by more than expanding bond purchases.
He also reminded that the effects of the new Covid-19 wave that is happening now will cause the short-term economic outlook to be worse than expected last November.
Elsewhere, finance minister Rishi Sunak said Britain's economy would get worse before it got better as the country faced a third coronavirus closure.
