Sterling rises above $2 mark as Bank of England prepares to release annual report

By 0826 GMT, the pound had risen as high as $2.0006 - last seen on May 1, according to Reuters data.

"$2 was pretty much on the cards after last week, so it's no surprise we're here," said a trader in London, refering to the Bank of England minutes that showed a stronger bias toward higher interest rates than many in the market had expected.