UK pound climbs to new high versus US dollar

The UK pound hit a new three-year high of $1.4050 in early London trading on Monday, before stabilizing around the US$1.40 level, as bullish investors bet on the UK's vaccination rollout bringing about an economic recovery, Reuters reports.

Sterling climbed to its highest levels since April 2018 when it crossed US$1.40 on Friday, having risen by 2.4 percent so far in 2021.

Speculators added to their net long position for the third week running in the week to February 16, CFTC positioning data showed. The market is at its most bullish in one year

The pound was at US$1.3992, down by 0.1 percent on the day. Versus the euro, it was up around 0.2 percent at 86.42 pence per euro, having touched a one-year high earlier in the session.