The pound rebounded against the dollar Friday, a day after a severe shellacking, as some investors were willing to bet on British Prime Minister Theresa May getting a controversial Brexit draft deal through parliament, dealers said.
"The pound is holding on to its early Friday morning gains, on the back of UK PM May's radio interview in which she said her deal was the best Brexit compromise the UK could achieve," said Dean Popplewell, an analyst at Oanda.
In the late European afternoon the pound was up around 0.6 percent against the dollar, off earlier highs, but slightly down against the euro.
The British currency slumped 1.7 percent against the dollar on Thursday, the biggest daily drop for more than two years.
But analysts warned that the outlook for the British currency's trajectory was uncertain.