The pound has hit its highest level against the dollar since the Brexit vote after a senior Bank of England official fuelled speculation it could raise rates in the coming months.
The Bank kept rates at 0.25% this week, but hinted at a rise in the future.
Sterling rose more than 1% against the dollar to hit $1.3610.
That was its highest level since 24 June, the day after the Brexit vote.
The pound also gained more than 1.1% against the euro to rise to 1.137 euros by Friday night.
Analysts have suggested the Bank could now lift interest rates back to 0.5%, the level they were before the EU referendum, as soon as November.
Markets which track investors’ expectations for the Bank rate now give a 63% likelihood of a rise in November, the highest since the Brexit vote. At the start of the week the futures markets gave only a 20% chance.
The return on government bonds, often influenced by interest rate expectations, also hit 15-month highs on Friday.
The yield on five-year UK bonds rose 7 basis points to hit 0.772%, the highest since 23 June 2016, the day Britain voted to leave the European Union.
