The pound rose near to a 26-year high against the dollar on Monday, following last week's release of minutes from the June 7th meeting of the Bank of England's monetary policy committee (MPC).

Sterling trade with the dollar peaked at 2.0006, close to a May trading value of 2.013, the highest since 1981.

At its lowest, the pound was trading for 1.9960 and averaged out at a three-week high against the US currency.

Trading against the euro was steady and maintained a multi-month high, moving only slightly between 0.6738 and a peak of 0.6723.

Last week, the MPC minutes revealed that the committee was split 5-4 in favour of freezing the base rate, a much tighter vote than analysts had predicted.

Most are now unanimous in forecasting a rise to 5.75 per cent following the next meeting of the MPC on July 7th.