LONDON: Sterling edged higher against the euro on Tuesday and erased its earlier losses against the dollar after Europe’s medicines watchdog said AstraZeneca’s COVID-19 vaccine was safe.
Sterling had earlier fallen 0.65% versus the dollar to a one-week low of $1.3809 but by 1430 GMT it was flat at $1.3892
Against the euro, it rose 0.13% to 85.73 pence, having earlier hit its lowest level of 86.40 pence since March 5.
Analysts attributed the morning fall to news that Germany, Italy and France suspended AstraZeneca’s COVID-19 shots amid safety fears, dampening euphoria in Britain over its swift vaccination push.
The European Medicines Agency (EMA) said there was no indication that the blood clot incidents had been caused by the vaccine, but experts were assessing that possibility.
The World Health Organization also said there was no proven link and people should not panic. Shares in AstraZeneca, Britain’s second biggest listed company, were up 3.8%.
Britain said it had no concerns, but analysts have been cautious saying that if the safety fears surrounding AstraZeneca vaccine were confirmed, it could compromise Britain’s speedy inoculation programme.
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