Sterling has jumped after opinion polls suggested the UK would avoid a hung parliament after next week’s election.
The pound reached a seven month high against the dollar and its highest level against the euro since May 2017.
The move came after polls suggested a 10-point lead for the Conservative party and a parliamentary majority.
However, analysts cautioned against relying too much on one poll and said the pound gained momentum after it went past the $1.30 mark.
Michael Brown, senior analyst at Caxton, said: “As we saw in 2017, polls can sharply narrow as we approach polling day.
“If a repeat situation pans out, seeing Labour gain ground and hung Parliament territory approach, sterling will likely face stiff headwinds.”
The pound gained as much as 0.6% to touch $1.307 while against the euro, the pound hit a high of €1.181, up 0.68%.
Jane Foley from Rabobank said the move was mainly caused by “technical reasons” as sterling went over the “psychological” $1.30 level.