By Patrick Graham

LONDON, April 19 (Reuters) - Sterling bounced above $1.43 for the first time in a week on Tuesday, helped by two polls showing the "In" camp well ahead in the run in to June's referendum on European Union membership.

Polls released in the past month have shown a drift towards the "Out" camp, showing the vote was broadly too close to call, but ICM and ORB surveys late on Monday gave the campaign to remain in the bloc 8 and 11 point leads respectively.

Sterling, which has held up well in the face of concerns over the damage a Brexit would do to the UK and European economy, gained around 0.3 percent to $1.4310 in early trade in London.

It (Other OTC: ITGL - news) was also 0.2 percent higher at 79.12 pence per euro.

"It is a nice turn for the 'remain' campaign after tighter polls hit the headlines over the past week," said Tobias Davis, head of corporate treasury sales at Western Union in London.

"There is also some risk appetite about and rumours of short covering on sterling against the yen are also contributors."

Speculators increased their short positions on sterling to the highest level in almost three years in the week to last Tuesday. For graphic see: http://reut.rs/1XUWCmS.

The pound is down more than 6 percent since the start of the year on a trade-weighted basis, with most banks saying it would fall sharply in the event of a Brexit. But it has so far resisted a return to lows of $1.38 hit in February when the referendum date was announced.

"We still have seen almost no hedging activity on the part of the big asset managers," said the head of institutional investor sales at one of the top six currency trading banks by volume in London, asking not to be named.

"So the big question over the next month is whether they make a decision on the Brexit event. If they do that would hurt sterling. But you have to remember that we may also see a good bounce if the country votes to stay." (Editing by Andrew Heavens)