Sterling extended gains against the dollar on Monday, rising to a one-week high as share prices gained sharply led by financials. The pound was up 1.3 percent at $1.4195 after hitting a high of $1.4198. The euro was down 0.9 percent at 91.60 pence. "It reflects a degree of optimism in the market, we've seen an extension of the rally in equity markets, and that is helping to boost the pound," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.