Sterling climbed to a 2016 high and global stocks rallied as investors bet Britons were likely to vote to remain in the European Union yesterday.

Oil prices rose, shrugging off a smaller-than-expected draw in US crude stockpiles, and the safe-haven yen fell against the dollar as the last pre-vote opinion polls showed the “Remain” camp holding a small lead.

Financial markets have been racked for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe’s stability.

The pound, which has been the lightning rod for opinion on the EU referendum throughout the six-month campaign, was up 0.9 per cent at $1.48 as traders cut their bets on volatility after the vote.

Wall Street rose nearly one per cent, with the S&P 500 approaching all-time highs. MSCI’s 46-country All World index climbed one per cent to hit its highest in two weeks.

The advance on Wall Street tracked European and Asian markets. London’s FTSE rose 1.23 per cent, hitting a two-month high.

Germany’s DAX and France’s CAC 40 rose nearly two per cent.

In Tokyo, the Nikkei closed up 1.1 per cent.

With the polls still tight and having proved unreliable in Britain’s general election last year, however, caution remained.

Before the British vote, exchanges, market regulators and banks moved to tighten risk-management systems. Singapore’s stock exchange has raised the amount of cash companies must pledge to cover trading positions. Central banks have said they stand ready to pump in emergency cash.

Questions remained about the direction markets will take even if the United Kingdom votes to stay in the EU, with some believing investors may take profits whatever the outcome.

The eurozone currency also climbed against the dollar, briefly breaking $1.14 and last trading up 0.5 per cent to $1.135. That pushed the dollar index, which tracks the US currency against six rival currencies, down 0.2 per cent..

Oil prices rose in volatile trade, with investors less worried about prospects for the global economy. Brent crude was up 35 cents, or 0.8 per cent, at $50.23 a barrel.