Sterling hit its highest in a month against the dollar today, a day after its biggest rise in nearly two months.

The gains came as investors trimmed some bearish bets before the UK parliament discusses the European Union repeal bill.

Helped by a weaker tone to both the dollar and euro globally, the pound racked up another third of a percent in gains by late afternoon in London to trade as high as $1.3081.

It also gained 0.1% to 91.30 pence against the euro, its strongest in more than two weeks.

Dealers said there were hopes that the bill debate may provide the basis for some clarity and progress in a Brexit process that has been cast as struggling to get past a handful of initial tests.

Investors have doubled net speculative bets against the pound and in favour of the dollar in the past three weeks, bringing them to their highest since early May.

Analysts also wonder whether sterling's slide against the euro, with some banks predicting parity within a year, will provoke more efforts by the Bank of England to talk the currency up.

Prime Minister Theresa May warned lawmakers over the weekend that Britain could be faced with a Brexit "cliff edge" if they failed to back the repeal bill, which will sever Britain's ties with the bloc.

Finance minister Philip Hammond urged lawmakers not to seek to delay the legislation, which will copy existing EU legislation into domestic law, following reports that the opposition Labour Party is planning to propose several changes.

The Bank of England's Michael Saunders reiterated last week that there was no particular level of the pound that worried the central bank, but further weakness would put more pressure on inflation already running above the bank's 2% target.