Sterling rises on Leadsom speculation, trades above $1.29

LONDON : Sterling turned higher on Monday, on reports that Andrea Leadsom, one of the two candidates from the ruling Conservative Party to succeed Prime Minister David Cameron, is due to make a statement at 1115 GMT.

Traders said there was talk she might withdraw from a leadership contest due to be decided by Sept. 9 leaving the door open for Interior Minister Theresa May, who was in the “Remain” camp during the Brexit vote, as the only candidate for the top job. That might ease political turmoil and provide some relief to the battered pound, traders said.

Sterling rose to $ 1.2987 at 1055 GMT, slightly higher on the day, having traded at $ 1.2865 at around 1035 GMT. The euro was down 0.2 percent at 85.10 pence.