A confluence of factors including growing expectations of a rate hike next month and a favorable transition deal secured by Prime Minister Theresa May last month has prompted investors to load up on the British currency in recent weeks, especially against a listless euro and a struggling dollar.

The sterling trade-weighted index rose to 80.43, its highest since June 30, 2016 and is up nearly 3 percent since early March.

A referendum to leave the European Union took place on June 23, 2016, sending sterling hurtling downwards.