The dollar slipped on Monday against its major peers, dropping to a two-week low versus the yen, as positive news about a COVID-19 vaccine and a wave of merger and acquisition deals lifted the mood in global equity markets.
The pound rose against the euro and a broadly weaker U.S. dollar on Monday, boosted by improved risk appetite in global markets, while investors waited for UK lawmakers to vote on a bill which the European Union has told London to scrap.
The U.S. dollar lost ground to the Japan's yen for the fifth straight day and the yen was at a seven-week high against the greenback on Friday as investors sought safety amid concerns about a resurgence in coronavirus cases in Europe and a lack of progress in U.S. fiscal...
Sterling edged lower on Friday as rising COVID-19 cases and the Bank of England signalling it is examining negative interest rates kept the currency under pressure.
Sterling lost 0.6%, or around one cent, versus the dollar after the Bank of England said that it had been briefed on how a negative interest rate could be implemented effectively, should it be needed.
The dollar dropped to a two-week low against the yen on Tuesday on expectations the Federal Reserve will maintain its downbeat stance on the U.S. economy as it grapples with the COVID-19 pandemic, and keep U.S. interest rates near zero for some time.
The euro rose for a third straight session against the dollar on Friday, with investors encouraged to push it higher after the European Central Bank showed no sign of stemming the single currency's appreciation.
Fears that Britain will end its post-Brexit transition period without agreeing any trading arrangements sent the pound to 5-1/2-month lows on Friday, overshadowing data showing the economy recovering and news of a new trade deal with Japan.
The euro rose to a one-week high against the dollar on Thursday, after European Central Bank President Christine Lagarde said that while the ECB is watching the exchange rate, it is not a monetary policy tool.
European Central Bank policymakers agreed on Thursday to look through the euro's appreciation, judging it was broadly in line with economic fundamentals and fearing any hint of a "currency war" with the United States, four sources at the meeting said.
The pound fell 1.7% to hit a more than five-month low against a rising euro on Thursday, weighed down by fears that the UK-EU trade negotiations may fall apart.
The euro and German government bond yields jumped to their highest in a week on Thursday after ECB chief Christine Lagarde said the ECB is watching the euro closely but stressed there is no foreign exchange target.
The British pound fell to a 10-week low of 91.64 pence versus the euro as well as sliding 0.5% to $1.2932, nearing a six-week low, as negotiations between UK and European Union representatives were due to start.
The U.S. dollar slid from a four-week high on Wednesday, led by losses against the euro after a news report said European Central Bank officials have become more confident in their outlook for the region's recovery.
Sterling hit a six-week low below $1.29 on Wednesday before bouncing back above $1.30 as Britain unveiled draft legislation for post-Brexit life, stoking concern that trade talks with the European Union could be derailed.
Sterling rose back above the $1.30 on Wednesday after an EU statement that said it would not suspend Brexit negotiations over the British government's new internal market bill.
Sterling fell below the $1.29 mark against the dollar on Wednesday after new British government legislation intended for the post-Brexit period explicitly acknowledged certain provisions would be inconsistent with international law.
The safe-haven dollar climbed to a four-week peak on Tuesday, led by gains versus sterling on renewed worries about Brexit and as risk appetite waned with a sell-off on Wall Street.
Sterling fell more than 1% against the dollar on Tuesday as fears grew that Britain was preparing to undercut its Brexit divorce treaty and torpedo trade talks with the European Union.
Sterling fell on Monday against the U.S. dollar and the euro as Brexit talks plunged into crisis following Britain's threat to override its European Union divorce deal.
As risk assets recovered on Friday afternoon, the safe-haven U.S. dollar dipped, retracing gains made on safe-haven demand following a Labor Department report that job growth slowed further in August, threatening the economy's recovery from the COVID-19 pandemic.
Sterling fell against the dollar for the third day in a row on Friday, retreating from its recent highs, as the dollar strengthened and Brexit risks weighed on the pound.
Sterling will lose some of its recent gains against a weaker dollar as year-end approaches, hurt by Brexit uncertainty and fears surrounding the coronavirus pandemic, a Reuters poll showed on Friday.
The dollar's downtrend will continue into next year, driven largely by the U.S. Federal Reserve's shift to a new policy framework, although expectations for a deep fall in a sustained way have waned somewhat from last month, a Reuters poll found.