Sterling surged on Friday to a three-month high amid investor optimism about a last-minute Brexit deal between Britain and the European Union.
Against the dollar the pound rose 1.9% to $1.2682, and against the euro was up 1.67% at €1.1489.
The currency has rallied more than 3% since Thursday, its biggest two-day gain since before the June 2016 referendum on leaving the EU.
Many UK-focused shares also surged, with Royal Bank of Scotland up 11.6%.
On Friday, EU Brexit negotiator Michel Barnier said he had had a "constructive" meeting with UK Brexit secretary, Stephen Barclay. That followed talks between the Irish and British prime ministers on Thursday, after which a joint statement spoke of "a pathway to a possible deal".
Cairn Energy PLC 39% Potential Upside Indicated by Barclays Capital Posted by: Amilia Stone 10th October 2019
Cairn Energy PLC with EPIC/TICKER (LON:CNE) has had its stock rating noted as ‘Reiterates’ with the recommendation being set at ‘OVERWEIGHT’ today by analysts at Barclays Capital. Cairn Energy PLC are listed in the Oil & Gas sector within UK Main Market. Barclays Capital have set a target price of 250 GBX on its stock. This indicates the analyst now believes there is a potential upside of 39.0% from today’s opening price of 179.8 GBX.