Sterling hit its highest level since the 2008 financial crisis on Tuesday after a survey showed British manufacturing growing at its fastest in seven months, adding to the case for a rise in interest rates this year.
The PMI index of sentiment among manufacturing purchasing managers rose to 57.5 in June from 57.0 in May - its highest since November and well above the 50 line that divides growth from contraction. Economists in a Reuters poll had expected the index to fall to 56.8.
The survey adds to evidence that Britain's consumer-led recovery is becoming more balanced and sustainable. The numbers are likely to reassure policymakers looking for a more broad-based recovery based on greater exports, manufacturing and business investment.
Sterling rose near $1.72, up around 0.25 percent on the day. In contrast to the UK data, U.S. data disappointed with the Institute for Supply Management's index of national factory activity at 55.3 in June, almost unchanged from May's 55.4 reading.
But it was under the 55.8 reading a Reuters poll expected.