Sterling Weathers Vaccine Issues, Climbs for Second Day

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LONDON, April 13 Reuters Sterling rose for a second day against the dollar and the euro on Tuesday, as analysts said Britains vaccination drive had not been derailed by its curbing of the use of AstraZenecas COVID19 vaccine.

The pound lost 1 against the dollar last week as Britain advised alternatives to the OxfordAstraZeneca vaccine to vaccinate under30s. Britain has largely depended on the AstraZeneca vaccine so far to immunize more than half of its population.

The country has offered all over50s a first dose of COVID19 vaccine as the rollout of Modernas shot in England began on Tuesday, the government said, adding it was on track to give a shot to all adults by the end of July.

It recouped some of those losses on Monday as Englands shops, pubs, gyms and hairdressers reopened after three months of lockdown and continued to hold up against a broadly stronger dollar on Tuesday.

By 0747 GMT, the pound was 0.1 higher at 1.3759 and 0.25 higher to the euro at 86.50 pence.

We were not at all surprised to see sterlings rebound yesterday after last weeks correction the storm that hit the AstraZeneca vaccine has not derailed the UK vaccination plans, leaving prospects of a sharp recovery in the country intact, strategists at ING said in a note to clients.

Also, GBPUSD appeared meaningfully undervalued at the end of last week. We expect the pound to show relatively good resilience to any USD rally today.

Sterling has been among the bestperforming G10 currencies this…

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