* Chart: world currency rates in 2020 tmsnrt.rs/2egbfVh
* Chart: Trade-weighted pound sterling since the Brexit vote tmsnrt.rs/2hwV9Hv (Adds details, updates prices)
LONDON, June 3 (Reuters) – The pound fell against the dollar on Thursday as data showing an increase in hiring among private employers in the United States suggested a rapidly recovering economy that propelled the dollar higher .
Investors have been betting against the dollar for the past few months, but have become more cautious lately, wondering whether a surprisingly strong rebound in the US economy threatens the theory that rates will stay low for long.
The pound sterling fell 0.43% to $ 1.4108 after private US payrolls turned out to be stronger than expected after hitting a three-year high of $ 1.4250 earlier this week, not far from his High after Brexit of $ 1.4307 in April 2018.
The huge payroll miss in April, when the monthly hiring of 266,000 employees thwarted expectations of 1 million, had made investors nervous about the strength of the US recovery.
Traders also waited for the U.S. non-farm payroll report due Friday, which could set the tone at central bank meetings later this month.
The pound climbed 0.2% against the euro to 85.97 pence.
Investors are waiting for firmer signals as to whether growing cases of a COVID-19 variant, first found in India, could help the wider UK economy reopen on Jan.
The UK currency has been a top performer among its G10 rivals this year, buoyed by optimism about the country’s rapid vaccination program and hoping its economy will recover faster than some as a result.
However, those hopes have been dashed in the past few weeks when rising cases of the variant of COVID now known as Delta led Prime Minister Boris Johnson to testify that he would be cautious about lifting travel restrictions and social distancing.
According to media reports on Wednesday, the government is considering postponing until June 21 for the remaining restrictions to be lifted.
Reporting by Lawrence White; Editing by Angus MacSwan, Mark Potter and Barbara Lewis