The U.S. dollar tumbled against the safe-haven yen Friday amid uncertainty over the fallout from Britain's vote to exit the European Union, while the dollar fell against the euro partly on reduced expectations of a U.S. interest-rate hike this year.
While the sterling was last down 0.65 percent at $1.3281, it still hovered above a 31-year low of $1.3122 touched Monday. Analysts said political uncertainty in Britain following the Brexit vote was helping the yen gain. The dollar was last down 0.6 percent against the yen at 102.66 yen after touching a session low of 102.44 yen in early trading.
Former London Mayor Boris Johnson abruptly pulled out of the race to become Britain's prime minister Thursday, a position he was once favored to win, upending the contest less than a week after he led a campaign to take the country out of the EU.
"UK politics are in an absolute shambles right now," said Chris Gaffney, president of EverBank World Markets in St. Louis. "It's really people looking for safe havens and looking for shelter from the uncertainty," he said in reference to the yen's gains.