Sterling hit a six-month high this morning, up 1.41 per cent against the dollar at $1.49, as British voters decide whether to leave or remain in the European Union in today's referendum.

The British currency was buoyed by the latest opinion polls suggesting that the 'remain' campaign has a small lead, providing some relief and confidence for the financial markets. The pound also rose against the euro to €1.31. Corporate treasurers responsible for managing sterling currency positions could begin to feel reassured – although the danger of a sterling slump (predicted to collapse by up to 10 per cent if UK voters choose to 'leave' the EU) has by no means dissipated.

The FTSE was also up 0.6 per cent, breaking through the 6,300 mark at the start of the day and rising above 6,360 in mid-morning trading. However, traders remain cautious and Reuters reports that “share trading across Europe was just a third of its normal level and two-thirds lower than average on the UK's FTSE”.

Isao Kubo, an equity strategist at Nissay Asset Management, told Reuters that “most people at this point expect a rise in the market” due to expectations that the vote will favour Britain remaining in the EU. However, he added: “But you never know, and it will be clear by tomorrow so you don't want to take new positions now.”