Sterling Hits Three-year High amid UK's Rapid Vaccination

The British pound is heading towards a three-year high against the dollar and an eight-month high against the euro on Tuesday, as the UK's leadership in COVID-19 vaccines gave a boost to the currency.

Against the US currency, the sterling reached $1.3788 in early trading, and against the European single currency it stood at €1.14.

Analysts said indicated that the UK's COVID-19 vaccine rollout in 2021 has been faster compared to Europe, putting the pound at less than eight-month high against the euro.

The Pound was also widely helped by the Bank of England, which at its meeting last week pushed back market expectations about negative interest rates, as money markets won't reflect negative rates from the bank until the end of 2022.