Pound Reaches 3-Year High on Vaccination Growth

The pound sterling has reached a three-year high as traders bet on faster UK economic recovery as vaccination rates increase.

“The pound is favored because the progress of vaccination puts the U.K. closer to an economic normalization than other countries. Sterling could climb toward $1.45”, Toshiya Yamauchi - chief manager for foreign-exchange margin trading at Ueda Harlow Ltd. in Tokyo commented.

The British pound has already gained as much as 0.3%, rising to $1.4248 and breaching a February peak to reach its highest level since April 2018. According to data collected by Bloomberg News and Johns Hopkins University, a whole three-fourths of the UK population will be covered with a two-dose vaccine in one month if the current vaccination pace continues.

British authorities plan to fully reopen the economy on June 21. 

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