Sterling hit its highest level since the result of the Brexit vote today as investors doubled down on bets the Bank of England would raise interest rates soon.
The UK currency was heading for its best week in almost nine years against a currency basket.
Comments from Bank of England policymaker Gertjan Vlieghe echoed the bank's signal this week that the first rate increase in a decade could happen in "coming months".
This catapulted the pound past the $1.36 mark for the first time since June 24, 2016, the day of the EU referendum result.
The currency eased off its $1.3616 high to trade 1.5% up at $1.3588 in later trade, and on track for a 3.6%weekly gain on a trade-weighted basis - its best performance since February 2009.
After hitting an almost two month high of 87.75 pence per euro on Vlieghe's comments, sterling settled to trade around the 88 pence mark, up 1% on the day.
Analysts said that it seemed to be a positive time for sterling this week.
"We had the higher inflation data on Tuesday, the Bank of England yesterday, and today we've completed the hat trick - arguably the biggest dove on the Monetary Policy Committee coming out in support of a rate hike in coming months if the conditions continue" they stated.
Analysts arguing against an imminent hike by the Bank of England have said the bank's job has been complicated by wages, which have not kept pace with inflation, and an economy facing the uncertainty of Britain's vote to leave the European Union, making it less likely to move soon.
Brexit has also put sterling back on investors' radars after days of being dominated by moves in the euro and the dollar.
Traders will be watching for a speech on Brexit next week by Prime Minister Theresa May.
The next round of Brexit talks with the European Union has been postponed by a week until September 25.
And Bank of England Governor Mark Carney is due to speak in Washington on Monday.
