On Tuesday the pound hit its highest level since the Brexit referendum in June 2016 at above $1.43.
The rise in value is believed to be due to an interest rate hike expected to be announced by the Bank of England for May. The central bank already increased the cost of borrowing for the first time in a decade in November 2017. In February it said further hikes were likely to curb inflation.
The dollar has also been weak in recent weeks due to the uncertainity surrounding Washington's trade policy.
Other reasons for the rise in the currency's value have been given as a seasonal rise in inward capital flows, with the pound historically doing well in April.
Analysts say that whether the pound can sustain its value remains to be seen given the details of the government's Brexit plans are still unclear.