Sterling rose from four-week lows against the dollar today, after British prime minister Theresa May hit back at a plot to topple her by saying she would provide "calm leadership" to the country.
It emerged earlier today that 30 of May's lawmakers were backing a plan to replace her as prime minister.
Sterling briefly topped $1.31 after the statement, up from $1.3052 beforehand, before easing back a touch to trade at $1.3080, still down 0.2% on the day.
Analysts said the market was potentially looking for May to resign, but her today suggested otherwise.
Britain's FTSE dropped as sterling gained, though it still traded higher this afternoon with gains of 0.2%.