Pound rises on European optimism

The British pound rose to a 10-week high against the dollar as increased optimism concerning European leaders reaching a deal helped to push the currency past its American counterpart, Bloomberg reports.

According to the news outlet, the move closer to resolution of the region's debt crisis hurt demand for the relative safety provided by the greenback. The pound also benefited from positive industry data that showed U.K consumer confidence rose to a seven-month high in January.

"The pound is being driven by a broader uptick in risk sentiment," Elizabeth Gregory, a market strategist at Swissquote Bank SA in Geneva, told Bloomberg. "A lot of people are encouraged that European financial operations are going to handle all of their imminent funding needs."

The pound rose 0.4 percent to $1.5777 at 2:06 p.m. London  time after reaching $1.5796 earlier in trading, the strongest level since November 21.

The Street reported that the pound may benefit further from a move by investors to riskier assets, as the rise in market sentiment should prop up the currency in the coming days.