Monday 15 February 2021 6:49 pm

Up we go: Pound sterling approaches $1.40, hitting two-year-high thanks to Covid vaccine rollout

Forex analysts expect pound sterling will crash through the $1.40 barrier shortly as the record-setting Covid vaccine rollout continues across the UK.

Pound sterling had just surpassed $1.391 by this evening, up more than 0.4 per cent and close to a three-year high against the US dollar.

Read more: FTSE 100 follows global markets higher, as 15m Brits get first jab

Analysts at ING in a note said pound sterling can expect to surpass $1.40 as soon as vaccine optimism increases and lockdowns ease.

Prime Minister Boris Johnson will judge this week how fast England can exit its lockdown after vaccinating 15m of the most vulnerable.

“GBP continues to reap the dividends of a successful vaccine roll-out and momentum is building towards a re-opening of the economy – probably starting with schools on March 8th,” said Chris Turner, global head of markets at ING.

Poud sterling was also buying slightly more than €1.146 against the euro by the evening.

David Madden, market analyst at CMC Markets was also bullish on sterling.

“When you factor in the relative success of the UK’s vaccination scheme it seems feasible that certain restrictions will be eased in the weeks ahead.

“As Britain moves slowly towards re-opening its economy, that should bode well for the pound,” Madden said.

Read more: Bank of England holds rates, and would need half a year for negative rates