Sterling edged up against the dollar today, breaking above $1.38 and touching its highest level in almost three years as the UK's speedy coronavirus inoculation programme supports the currency. 

The pound has gained broadly in the past few weeks amid optimism over Britain's rapid Covid-19 vaccination roll-out, while its Brexit deal with the European Union has also removed some pressure from the currency. 

Sterling was up 0.3% to $1.3850 against the dollar this morning, hitting its highest level since April 27, 2018.  

Against the euro, sterling traded 0.2% higher at 87.54 pence. 

The Bank of England's decision at its latest meeting to give British lenders at least six months to prepare for the possible introduction of negative interest rates has also supported the pound, with money markets pushing forward expectations of a rate cut to March 2022 from August 2021. 

The UK has moved to tighten travel restrictions from next week and it will require passengers arriving from countries where worrying coronavirus variants are spreading to pay for 10 days of quarantine in hotels. Rule-breakers will face heavy fines or jail terms.