Pound posts biggest rise in eight years as FTSE jumps 3%

Sterling bounces back from weeks of heavy selling as traders react to apparent shift in support towards EU remain vote

The pound posted its biggest one-day rise for almost eight years and the FTSE 100 share index jumped 3% on Monday, as traders reacted to an apparent shift in support towards a remain vote in Thursday's EU referendum.

A shift in opinion polls suggesting the remain camp had regained ground was enough to send the pound soaring. After coming under heavy selling pressure in recent weeks, it rallied more than 2.3% against a basket of other big currencies, the biggest percentage gain since October 2008. It rose more than 2% against both the US dollar and the euro.