Pound up against dollar and euro amid hopes for strong UK recovery

Analysts say SNP's failure to achieve overall majority in Scottish elections also a factor in highest level against dollar since February

The fading prospect of an immediate Scottish independence referendum and hopes for a strong UK economic recovery sent the pound higher against the US dollar and the euro on the financial markets.

Sterling gained more than 1.5 cents to trade above $1.41 against the US currency for the first time since late February amid relief in the City that the SNP had fallen just short of securing an overall majority in last week's election to the Scottish parliament.