The dollar held near a one-week high on MondayĀ amid concern about global trade after U.S.-Canada trade negotiations reached anĀ impasse.
Traders aggressively bought the dollar against the British poundĀ and the Canadian dollar. The dollar's status as the chief reserve currency make the U.S. currency the primary beneficiary of concern over trade conflicts.
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On Saturday, U.S. President Donald Trump said there was no need to keepĀ Canada in the North American Free Trade Agreement and warned Congress not toĀ meddle with the trade talks or he would terminate the trilateral pact altogether.
But gains were muted - safe-haven currencies such as the Swiss francĀ and the Japanese were supported against higher-yieldingĀ rivals.
"Trade tensions are broadly supporting the dollar, but the market is hardlyĀ very conducive of risk," said Viraj Patel, an FX strategist at ING in London.
In early London trading, the dollar edged higher to 95.22, nearingĀ its highest level since Aug. 27 against a basket of its rivals. It has gainedĀ nearly 7 percent since mid-April when trade tensions first arose.
The euroĀ weakened 0.1 percent against the dollar after FitchĀ Ratings left its credit rating for Italy unchanged at "BBB" but revised itsĀ outlook to negative on Friday.
Sterling was the biggest loser against the dollar after the EuropeanĀ Union's chief Brexit negotiator, Michel Barnier, said he is "strongly opposed"Ā to the British government's proposals on future trade ties after it leaves theĀ EU.
The pound fell 0.4 percent to $1.29 and weakened 0.3 percentĀ against the euro to 89.80 pence.
Trading was quiet with U.S. markets shut for a holiday and before EuropeanĀ manufacturing PMI data due shortly