Sterling shakes off dust after yesterday's drop

Sterling rose on Tuesday after falling yesterday, as the dollar gave up ground while the euro advanced amid improved risk appetite in the markets. 

GBP/USD last traded at 1.2836, up from the opening of 1.2792, with a session-high at 1.2845, and a low at 1.2775.

Sterling's recovery comes after the dollar fell to a one-month trough against a basket of currencies, while euro hit a five-month peak, buoying the pound alongside it. 

Earlier U.K. data showed net public borrowing rose to 4.4 billion pound in March, compared to February's 0.7 billion surplus, but the weak data didn't weigh on the pound. 

Negative pressures kept hanging over the pound generally, as Scotland seeks independence from the United Kingdom, while markets await early U.K. elections in June.