The pound rebounded further Wednesday, but gains were capped by investor anxiety after Brexit turmoil sent the currency tumbling and set the stage for a potential snap UK election next month.
Global stocks rose, with Hong Kong the star performer on reports -- which were subsequently confirmed -- that city leader Carrie Lam would shelve a loathed extradition bill that sparked months of unrest.
Investors brushed off US President Donald Trump's latest China outburst to push equity markets higher.
Back in London, the pound shot back above $1.22 Wednesday, an increase of one per cent from late Tuesday.
Having dived Tuesday to USD 1.1959 -- the pound's weakest level since 1985 except for a 2016 "flash crash" -- it has since rallied on rising hopes that Britain will not exit the European Union without a deal.
"Sterling was thrown a lifeline by a parliament determined to avoid a no-deal Brexit," said analyst Connor Campbell at trading firm Spreadex, but he also injected a note of caution.
"The complicating factor here, and the reason that sterling's gains... are not even greater, is the potential for a general election."
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