LONDON: Sterling rose to an eight-month high against a weakening euro on Wednesday as Britain’s COVID-19 vaccine rollout helped the pound, while the European Central Bank hinting at a possible rate cut hit the single currency.

Although Britain’s death toll from the coronavirus pandemic passed 100,000 on Tuesday, its faster initial vaccine rollout than in the European Union has offered support to the pound.

The euro was under pressure after an ECB official said the central bank has room to cut its deposit rate further.

Sterling was up 0.3% at 88.26 pence at 1550 GMT, after hitting its lowest point against the single market currency since May 13.

Geoffrey Yu, senior EMEA market strategist at BNY Mellon, said “the general theme of UK doing well with vaccinations is playing a role” in lifting the pound, which is “not expensive and not over-owned yet”.

On the other hand, “the euro is clearly being undermined by ongoing concerns over vaccine rollout speed and supply,” Yu added.

British Prime Minister Boris Johnson said on Wednesday the COVID-19 lockdown in England would end on March 8, when schools could start to reopen.

Versus a stronger greenback, sterling reversed earlier gains and was down 0.3% to $1.3701, after touching a May 2018 high of $1.3759 in earlier trade.