After the result, it dipped to $1.2603, having hit a high of $1.2672 earlier.

Of the the 317 Conservative MPs, 200 backed the prime minister, but 117 voted against her.

XTB Online Trading said the "far from comprehensive victory" had caused "some selling in the markets".

Chief market analyst David Cheetham said the pound had erased some of its earlier gains and headed back lower.

However, the pound subsequently recovered ground and is still 1.14% up on the day against the dollar at $1.2635 and about 0.7% ahead against the euro at €1.1109.

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