Sterling climbed after SoftBank Group agreed to buy ARM Holdings in the biggest takeover of a British company since the country last month decided to leave the EU.

Sterling climbed the most since three days before Britain’s EU referendum as home secretary Theresa May prepared to take over as the UK’s next prime minister, removing one layer of political uncertainty.

Sterling weakened yesterday for the first time in nine days against the euro, slipping 0.5% to 77.85p, amid further evidence the currency is being driven by the UK’s vote on June 23 whether to remain in the EU.