Sterling hit two and a half highs against the euro today, on growing confidence that next week's election will give the Conservative Party the parliamentary majority it needs to deliver Brexit, ending near-term uncertainty. 

Recent opinion polls suggest the ruling Conservatives will win an outright majority in the December 12 election.

This will remove some of the political uncertainty that has weighed on the currency for the last three and a half years. 

Prime Minister Boris Johnson called the snap election to break an impasse in parliament over Brexit. 

A majority in parliament for his Conservative Party should allow him to get his withdrawal agreement passed by lawmakers and take Britain out of the EU by the January 31 deadline. 

Sterling rose 0.3% against the euro to 84.31 pence, its strongest level since May 2017. It has gained almost 10% from lows hit in August against the euro. 

The pound also rose 0.3% to a as high as $1.3148, taking its gains since October to more than 7%.

The latest Reuters poll also suggested investor sentiment towards one of the most battered major currencies in recent years was turning. 

Almost all foreign exchange strategists surveyed by Reuters were reasonably or very confident that Britain would leave the EU with a deal. 

The poll of nearly 60 foreign exchange strategists found sterling would rise 3% to $1.35 in 12 months. That compares with a $1.32 forecast made a month ago.