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Sterling rises above $1.40 for first time since February

Sterling rises above $1.40 for first time since February

LONDON (Reuters) – The pound broke above the key $1.40 level for the first time in more than two months on Monday, reaching as high as $1.40725 in early London trading, despite a win for pro-independence parties in Scottish elections.

Pro-independence parties won a majority in Scotland’s parliament on Saturday, paving the way for a high-stakes political, legal and constitutional battle with British Prime Minister Boris Johnson over the future of the United Kingdom.

But the pound strengthened as market participants did not interpret this as a near-term risk. Analysts said that the move in cable was due more to dollar weakness, as the greenback dropped to a two-month low after a disappointing U.S. employment report.

At 0725 GMT, the pound was up 0.5% against the dollar at $1.4055.

Versus the euro, sterling’s move was less pronounced. The pound was up 0.6% on the day at 86.415 pence per euro – its strongest since last Thursday.

(Reporting by Elizabeth Howcroft; Editing by Gareth Jones)

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