Sterling plunges but lifts FTSE to new high

The FTSE 100 soared to its highest level in almost three months after London’s multinationals were buoyed by weakness in the value of the pound.

The currency took a tumble after Sage experts claimed the Britain’s vaccine rollout could dramatically slow, weighing on the economic recovery.

Traders across Europe had pent up energy after the Easter weekend, with all the major markets pushing into the green.

The FTSE closed 86.25 points, or 1.28%, higher at 6,823.55.

Connor Campbell, financial analyst at Spreadex, said: “The pound took a serious knock, falling almost half a per cent against the dollar and more against the euro.

“This appears to be linked to both reports that the UK’s medicines watchdog is considering suspending use of the AstraZeneca vaccine for under-30s, and Sage’s claim the vaccination programme could dramatically slow down until the end of July.

“Paying little attention to the potential nuances of sterling’s slide, the FTSE used it as a platform for its own substantial growth.”

The pound decreased 0.41% versus the dollar to 1.384 and 0.75% against the euro at 1.167.

A raft of hospitality and retail stocks – including Cineworld, JD Wetherspoon and Hammerson – lifted higher after the goahead for the latest phase of the road map out of lockdown was announced.

BP shares jumped higher after the oil giant said it expects to pay down part of its debt months early.

The company was boosted by rising oil prices and earned billions from selling off parts of the business.

Its shares moved 10.05p higher to 299.85p.