In the wake of the UK general election, the pound has increased nearly 2% to $1.55 after the results suggest David Cameron will continue as prime minister.
CMC Markets spokesman, Jason Hughes said: "The market often likes a bit of consistency and stability and if the Conservatives are returned to power - be it as part of a minority government or as part of a coalition again - they will be able to push through a lot of the policies and approaches that they have done over the last five years in parliament."
Analysts have suggested that the increase may be short-lived as they are not sure about “Brexit” or Britain leaving the European Union.
UBS Wealth Management, Bill O’Neill said: "Sterling will, in our view, be moved by a number of different factors in the coming days and weeks.
"It could hold the initial gains following the astounding exit polls last night but the Brexit and Scottish devolution debates might influence the path of the pound quicker than we think."
CMC’s Mr Hughes added "If you look at the uncertainty that has been in play, almost since the start the of year, but certainly from about mid-February onwards, we've seen a fair bit of pressure on sterling due to the uncertainty of the political landscape locally," he said. "So I think we will see that relieving bounce."
