Sterling rose on Friday as traders evaluated whether the killing of pro-EU British Member of Parliament Jo Cox may alter the balance of opinion in Britain's referendum on European Union membership.
Cox was shot dead on Thursday, leading to the suspension of referendum campaigning.
Cox's death increased speculation that Prime Minister David Cameron might push back the vote scheduled for June 23, or that it could boost the pro-EU "Remain" campaign, which in recent days had fallen behind the "Leave" camp in opinion polls.
"This is people adjusting positions because they don't know what's going to happen," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York. "People are unwinding the 'risk off' trades for the most part."