Sterling holds steady

Sterling was stable on Friday amidst a broad-based weaker dollar after Britain said it would extend its coronavirus lockdown for at least three more weeks.

Foreign Secretary Dominic Raab said the UK could not risk the progress it had made in fighting the outbreak by easing up on restrictions at this "delicate and dangerous stage".

Speaking on Thursday, he said there was no time frame for the easing of restrictions as it would be irresponsible to give an indication of when the rules would change.

The United Kingdom has also extended by a month until the end of June the furlough scheme for workers at companies hit by the coronavirus outbreak, finance minister Rishi Sunak said.

The pound earlier sagged to its lowest level in decades as COVID-19 spread across Europe, killing thousands and overwhelming healthcare systems. The UK introduced a nationwide lockdown towards the end of March.

Since then, sterling has recovered by nearly 7% against the euro. It was little changed at 87.05 pence, compared with a low of 0.95 pence on March 19.

Against the dollar, the pound had a bumpy ride but was last up by 0.4% at $1.2503.

Nevertheless, the virus continues to claim lives, with total hospital deaths rising by 847 to 14,576 on Friday.

Britain's exit from the European Union, due to be formalised at the end of this year, has taken a back seat since the health crisis started and began to inflict serious damage on the economy, raising speculation that Prime Minister Boris Johnson may have to ask for an extension to the December deadline. A spokesman for Johnson, who is recovering from coronavirus infection, said on Thursday the government would not ask for an extension to the transition period. Analysts predict this stance could have a negative impact on the pound.