Sterling surges on Brexit minister's remarks

London

A PERCEIVED crack in Britain's "hard Brexit" line on leaving the European Union dominated trading on major currency markets on Thursday, driving the pound one per cent higher and helping spur a retreat in broader measures of the US dollar's strength.

Sterling surged 1.2 per cent to a three-week high of US$1.2663, also hitting an almost three-month high of 83.95 pence per euro after Brexit minister David Davis said that Britain would consider paying into the EU budget for market access.