DHAKA: UK shares and the pound have continued to regain some of the ground lost in the wake of the Brexit vote.

The FTSE 100 share index was up 2.4% at 6,287.28, after rising 2.6% on Tuesday.

The pound rose 1.2% against the dollar to about $1.35, although sterling still remains well below levels reached before the referendum.

Analysts also warned that the rally of the past couple of days might be short-lived.

‘Stocks and the pound are continuing to firm but the post-Brexit reality will bite sooner or later,’ said Joe Rundle, head of trading at ETX Capital, reports the BBC.

‘What we’re seeing in the FTSE is hope in Britain being able to ride it out by remaining part of the single market. This looks like wishful thinking.’

The pound had risen as high as $1.50 on Thursday as traders anticipated a ‘Remain’ vote, but by Monday it had plunged to a 31-year low against the dollar.

Sterling rose 0.9% against the euro on Wednesday to €1.2168. Before last week’s referendum it had been trading around €1.30.

BDST: 2130 HRS, JUN 29, 2016
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