Pound Hits 10Month High vs Euro, Takes Breather vs Dollar

LONDON, Feb 17 Reuters Sterling hit a 10month high against the euro on Wednesday as investors bet Britains COVID19 vaccinations would help its coronavirusbattered economy reopen quickly and recover from its biggest hit in 300 years.

The pound rose 0.2 against the euro to as high as 86.84 pence, its highest since April 2020. A day earlier, it had climbed to its best against the common currency since May last year.

Britain has vaccinated 15.6 million people with a first dose against COVID19 so far, with bets that its tattered economy could reopen quickly bolstering the pound.

Expectations of large fiscal stimulus in the United States have also sent the pound to its highest in twoandahalf years against the dollar.

Still, the pound fell 0.1 against the dollar to 1.3890. It has given up around 0.5 from the 1.3955 climbed against the greenback on Tuesday, its highest since April 2018.

The UKs successful vaccine rollout puts the economy in a relatively good spot, analysts at BMO Capital Markets said in a note.

Reporting by Tom Wilson Editing by Gareth Jones

Source Reuters

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