LONDON: Sterling cut some earlier losses on Wednesday after data showed a rush of new orders by businesses anticipating an easing of Britain’s lockdown prompted a much stronger rebound for UK companies than expected in March.
The flash IHS Markit/CIPS UK Composite Purchasing Managers’ Index rose to a seven-month high as Britain’s swift roll-out of COVID-19 vaccines bolstered confidence among British businesses.
The pound was down 0.3% to $1.3715 at 1110 GMT, after falling to its lowest since Feb. 5 of $1.3675 in earlier London trading. Versus the euro, it was flat at 86.22 pence, after touching its lowest since March 5 of 86.45 pence at 0729 GMT. “Today’s numbers are consistent with our view that brighter days are ahead for the economy. For investors, we still see further upside in sterling,” said Dean Turner, economist at UBS Global Wealth Management. Earlier this year, bets that Britain’s rapid vaccination drive would lead to a faster reopening of an economy propelled the pound above $1.42 in February. In early London trading, sterling had slipped to its lowest against the dollar in almost seven weeks after data showed a surprise decline in inflation in Britain in February.
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