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Sterling hits $1.40 for the first time in nearly three years

Sterling reached $1.40 against the U.S. dollar for the first time since April 2018 on Friday morning.

The dollar has been in decline on the back of a weak U.S. jobs report Thursday, while the pound is reacting positively to the U.K.’s uniquely successful Covid-19 vaccination rollout.

The U.K. suffered its worst economic downturn for more than 300 years in 2020, but its accelerated inoculation program has seen more than 16 million people receive the first dose of a coronavirus vaccine.

Despite nationwide lockdown measures having been in place since the turn of the year, economists are hoping for a swift recovery later in the year.

By contrast, U.S. initial unemployment filings totaled 861,000 last week, according to a Labor Department report Thursday, the highest level in a month and significantly exceeding the Dow Jones estimate of 773,000, prompting concerns about the pace of recovery stateside.