* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
(Updates prices, adds paragraph on positioning)
By Ritvik Carvalho
LONDON, March 29 (Reuters) - Sterling steadied near $1.38
against the dollar on Monday as a decline in concerns about
Britain's COVID-19 vaccine supply from the European Union helped
turn around some of the currency's recent losses.
The EU last week stopped short of imposing a ban on vaccine
exports, a proposal that had caused concern in Britain, which
relies on imports of COVID-19 inoculations for its rapid
vaccination programme, which has benefited the pound.
Expectations that Britain's economy will reopen quickly
after its rapid vaccine rollout lifted sterling to $1.42 in
February, at the time making it the best performing G10
currency. But worries about vaccine supply from the EU as well
as a strengthening dollar have pulled the pound off its perch.
On Monday, it traded 0.2% lower against the dollar at
$1.3771, having recovered some of last week's losses on Friday,
just shy of $1.38.
Against the euro, it traded 0.2% higher at 85.39 pence
"Overall, with UK-EU tensions over vaccine supplies easing
and vaccinations in the UK keeping a good pace, markets continue
to see the UK Government’s timeline to re-open the economy as
realistic and therefore sterling is retaining some better
resilience than other G10 currencies to USD appreciation", said
Chris Turner, ING's global head of markets and regional head of
research for UK and central and eastern Europe.
"Concerns about a worsening virus situation and the slower
vaccination progresses in the eurozone may widen the UK-EU gap
in terms of recovery expectations and we could see EUR/GBP test
the key 85 pence support in the coming days."
Speculators reduced their net long positions on the pound
for a third consecutive week in the week up to last Tuesday,
CFTC data on Friday showed.
(Reporting by Ritvik Carvalho
Editing by Peter Graff and Marguerita Choy)