After a sharp fall earlier in the week, the pound returned to trading steady on Tuesday supported by rising British debt yields.
Impacted by the announcement of tax cuts and additional stimulus to UK households, the pound plummeted on Friday and Monday to hit an all-time low of $1.0327.
However, it bounced back to $1.0770 in the Asian session today, helped by the Bank of England's (BOE) promise to monitor the market and implement a rate hike if necessary.
A series of measures taken from the government, the market began to provoke speculation that the BOE will implement a large interest rate increase.
Starting with expectations of 100 basis points, and 150 points, the market also did not rule out the possibility of a 200 basis point hike from the BOE at the November meeting.
Turning to the movement of the currency king, the US dollar remained firmly traded around the highs despite a slight decline against its main rival.
The euro, meanwhile, continues to hover around two-decade lows, pressured by the energy crisis and the growing risk of a new war in Ukraine.
The Aussie and New Zealand dollars, which hit fresh 2-and-a-half-year lows on Monday, tried to bounce back with both up 0.5%.