LONDON: Sterling held above $1.39 against the dollar on Thursday after British finance minister Rishi Sunak rolled out an expansive annual budget designed to prop up the economy.

Sterling is the best-performing G10 currency this year, with investors expecting Britain’s speedy vaccination programme will help the economy to recover from its worst annual contraction in 300 years.

As the locked-down country prepares to re-open, Sunak delivered what he hopes will be a last big spending splurge to get the economy through the COVID-19 crisis.

ING currency strategists said in a note to clients that the “generous budget” was seen “to strike the right balance and support the spring recovery”.

Sterling edged 0.1% lower against the dollar to $1.3937 at 1105 GMT. Versus the euro, it gained 0.1% to 86.40 pence.

The pound, which last week hit its highest versus the dollar since 2018, has gained 2% against the US currency and more than 3% against the euro this year.—Reuters