Reports of the European Union (EU) blocking the export of Covid-19 Pfizer-BioNTech vaccines to the UK may affect vaccination efforts in the country that have supported pound currency trading in the past.
The pound sterling fell below the 1.37000 price level as the market entered the European trading session against the US dollar.
The currency has previously garnered support from the market's positive outlook for the country's economic recovery as efforts to launch the Covid-19 vaccine nationwide go smoothly.
However, due to the EU's dissatisfaction with the AstraZeneca company which delayed the delivery of the Covid-19 vaccine to the bloc and secured supply to the UK, the country's vaccination efforts threatened supply risks.
In addition, the pound sterling was also affected by the strengthening of the US dollar which was in high demand due to uncertainty in the equity market resulting in a large fall in US stocks.
The strength of the greenback dollar also limited the movement of the euro even after the German economic data showed a growth of 0.1% in the fourth quarter of 2020, better than expected 0%, but fell from 8.5% recorded in the previous third quarter.
The dollar index, which measures the strength of the greenback dollar against a basket of major currencies, strengthened at 90.74 after rising 0.2% today.
