The British pound broke through the $1.40 barrier on Friday for the first time since April 2018 amid optimism over the country’s speedy vaccination programme.
Sterling was up 0.2 per cent against the dollar at $1.4005 in early morning trading as it headed for its sixth week of gains, after the UK hit its target of immunising 15 million people by last weekend. The pound later eased back to $1.3987 at 10.02am London time.
Fawad Razaqzada, market analyst at Think Markets, said the pound is likely to go even higher over time, "possibly towards the $1.50s in a few months’ time".
"This will depend to a great extent on how the UK economy will evolve and is subject to the virus situation. Things are looking up and there is finally light at the end of what has been a long tunnel," Mr Razaqzada told The National.
Britain's public sector borrowing hit £8.8 billion ($12.27bn) last month, the first January deficit for a decade and the highest figure for the month on record, according to data from the Office for National Statistics on Friday.
British retail sales plunged 8.2 per cent in January from December as non-essential shops went back into lockdown in England and were hit with tighter restrictions across the rest of the UK.
The government has invested £280bn in propping up jobs and businesses affected by the Covid-19 crisis so far, with public debt climbing to £270.6bn in the first 10 months of the fiscal year.
Despite coronavirus curbs, Britain's inflation rate rose to a three-month high of 0.7 per cent in January pushed up by higher food prices and fewer reductions by furniture retailers.
“This week’s stronger-than-expected inflation data also makes it less likely that the Bank of England will go down the route of negative interest rates, further boosting the pound,” Mr Razaqzada said.
“Let’s not forget that the UK also avoided a no-deal Brexit at the back end of last year, which is one of the key reasons the cable got to $1.40, a level where it was trading around before that 2016 [Brexit] referendum.”
Meanwhile, the pound dipped slightly against the euro in early trading, however Petr Krpata, a strategist at ING, said the bullish case for sterling against both the euro and dollar “remains intact”.
“Against the euro, the pound should benefit from the faster vaccination process and a stronger second-quarter economic rebound," Mr Krpata said.
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The biog
Name: Mariam Ketait
Emirate: Dubai
Hobbies: I enjoy travelling, experiencing new things, painting, reading, flying, and the French language
Favourite quote: "Be the change you wish to see" - unknown
Favourite activity: Connecting with different cultures
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
The Abu Dhabi Awards explained:
What are the awards? They honour anyone who has made a contribution to life in Abu Dhabi.
Are they open to only Emiratis? The awards are open to anyone, regardless of age or nationality, living anywhere in the world.
When do nominations close? The process concludes on December 31.
How do I nominate someone? Through the website.
When is the ceremony? The awards event will take place early next year.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
RESULTS
5pm: Maiden (PA) Dh80,000 1,400m
Winner: JAP Almahfuz, Fernando Jara (jockey), Irfan Ellahi (trainer).
5.30pm: Handicap (PA) Dh90,000 1,400m
Winner: AF Momtaz, Antonio Fresu, Musabah Al Muhairi.
6pm: Handicap (TB) Dh100,000 1,400m
Winner: Yaalail, Fernando Jara, Ali Rashid Al Raihe.
6.30pm: Abu Dhabi Championship Listed (PA) Dh180,000 1,600m
Winner: Ihtesham, Szczepan Mazur, Ibrahim Al Hadhrami.
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,600m
Winner: Dahess D’Arabie, Fernando Jara, Helal Al Alawi.
7.30pm: Maiden (PA) Dh80,000 2.200m
Winner: Ezz Al Rawasi, Connor Beasley, Helal Al Alawi.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
