U.S. markets closed
  • S&P 500

    4,166.45
    -55.41 (-1.31%)
     
  • Dow 30

    33,290.08
    -533.37 (-1.58%)
     
  • Nasdaq

    14,030.38
    -130.97 (-0.92%)
     
  • Russell 2000

    2,237.75
    -49.71 (-2.17%)
     
  • Crude Oil

    71.50
    +0.46 (+0.65%)
     
  • Gold

    1,763.90
    -10.90 (-0.61%)
     
  • Silver

    25.84
    -0.01 (-0.04%)
     
  • EUR/USD

    1.1865
    -0.0045 (-0.38%)
     
  • 10-Yr Bond

    1.4500
    -0.0610 (-4.04%)
     
  • GBP/USD

    1.3809
    -0.0115 (-0.83%)
     
  • USD/JPY

    110.1500
    -0.0810 (-0.07%)
     
  • BTC-USD

    35,587.84
    -2,127.73 (-5.64%)
     
  • CMC Crypto 200

    888.52
    -51.42 (-5.47%)
     
  • FTSE 100

    7,017.47
    -135.96 (-1.90%)
     
  • Nikkei 225

    28,964.08
    -54.25 (-0.19%)
     

UPDATE 1-Sterling set for second week of gains versus dollar

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv (Updates prices, adds graphic)

By Ritvik Carvalho

LONDON, May 14 (Reuters) - Sterling was on track for a second week of gains against the dollar on Friday, consolidating above $1.40 as the U.S. currency took a breather from a recent rally.

The pound is up 1.8% against the dollar since the start of May and is the second best performing G10 currency against the dollar year-to-date, aided by a more hawkish Bank of England, which has begun tapering asset purchases, and by Britain's vaccination drive that has enabled a gradual reopening of the economy.

Britain will adapt its vaccine rollout to protect people more quickly in areas where a coronavirus variant first detected in India has emerged, the vaccine minister said on Friday.

The UK has delivered one of the fastest inoculation campaigns in the world, giving a first shot to almost 70% of the adult population and a second to 36%, helping to reduce infection rates and deaths.

By 1556 GMT on Friday, sterling was up 0.3% against the dollar at $1.4095, off a nearly three-month high of $1.4167 hit earlier this week.

Against the euro, sterling was 0.2% lower at 86.13 pence.

"GBP is largely holding onto recent gains and progress on the Indian variant of the virus is yet to have any impact," said ING in a note to clients. "Yet this needs to be watched."

"EUR/GBP did reject levels down at 0.8560 earlier this week quite strongly and we tend to favour more consolidation for the time being."

Analysts also say a combination of a stronger UK economic rebound than expected and the belief that any Scottish independence vote is a long way off makes the pound relatively attractive.

Britain's economy grew by a stronger-than-expected 2.1% in March from February, gathering speed for what is expected to be a sharp bounce-back this year after its deep coronavirus slump of 2020.

(Reporting by Ritvik Carvalho. Editing by Jane Merriman and Nick Macfie)