The pound rose for the sixth session running to a new 15-month high after data showed the British economy shrank by less than expected in May.
Figures showed the economy contracted 0.1% in May, after growth of 0.2% the previous month. Economists expected a contraction of 0.3%.
The UK — as well as most of Europe — defied widespread expectations, that it would fall into recession over winter.
Britain's currency has been on a tear against the dollar in recent days as investors have wagered that the Bank of England will have to keep raising interest rates while the U.S. Federal Reserve is close to stopping.
Expectations of higher interest rates in a country tend to boost its bond yields, making them look more attractive and boost the domestic currency.
Data on Tuesday showed that British wages rose at the joint highest rate on record in the three months to May, keeping the pressure on the BoE.
Plenty of market analysts think the pound may have further to rise, despite the lacklustre performance of the British economy.
