The dollar fell broadly on Friday in the wake of cautious comments from two U.S. Federal Reserve officials about global economic growth, while sterling rose following losses tied to fears about a Brexit deal.
The dollar jumped and traders bought into the safe-haven yen on Thursday after Britain's Brexit deal with the European Union was plunged into uncertainty, spooking investors across currency markets.
The euro and sterling rose on Wednesday as traders monitor the latest developments between the European Union and Britain on the latter's departure from the economic bloc, and the EU and Italy on the resubmission of the latter's 2019 budget.
The euro and sterling rose on Tuesday following comments from a British official that signaled Britain and the EU are close to clinching an agreement for the nation to leave the economic bloc as negotiators seek to avoid missing a deadline.
The dollar reached a 16- month high on Monday against a basket of currencies as investors built bets on a Federal Reserve interest rate increase next month, and political risks in Europe which put pressure on the euro and the pound.
The U.S. dollar rose toward a 16- month high against the euro on Friday after the U.S. The Fed is widely anticipated to raise interest rates in December, with traders' expectations at 75.8 percent, compared to 71.1 percent a day earlier.
The U.S. dollar held on to earlier gains on Thursday after the Federal Reserve announced its latest monetary-policy decision.
The U.S. dollar edged lower on Wednesday, with some investors tiptoeing back into riskier assets after midterm elections split power in the U.S. Congress, giving Democrats greater ability to check any major initiatives from President Donald Trump.
The Democratic Party is expected to win control of the U.S. House of Representatives, with Republicans likely to retain their majority in the Senate.
The dollar dipped on Monday after three consecutive weeks of gains as investors took profits before U.S. midterm elections this week that may fuel a new bout of volatility for global markets.
The dollar retreated across the board on Thursday and sterling rose the most in nine months on reports that London is close to sealing a financial services deal with Brussels.
The dollar edged up to a fresh 16- month high against a basket of key currencies on Wednesday on the back of continued U.S. economic strength, putting the greenback on pace for a seventh straight month of gains.
The dollar rose to a 16- month high against a basket of major currencies on Tuesday, amid growing signs the United States economy is outperforming its peers.
The dollar edged higher against the euro, on Monday, close to a 10- week high hit last week, on news German Chancellor Angela Merkel would not seek re-election as head of her CDU party.
The U.S. dollar followed Wall Street lower on Friday, falling from the two-month high hit earlier in the day after news of stronger-than-expected third-quarter gross domestic product.
The Japanese yen and Swiss franc gained only briefly on Thursday as currency traders showed little reaction to a wave of selling across stock markets.
The U.S. dollar strengthened as much as 0.8 percent against the euro on Wednesday to its strongest since Aug. 20 after European data signaled that economic growth could be flagging across the euro zone.
The U.S. dollar fell after Wall Street opened lower. The dollar/yen is moving almost tick-to-tick with stocks," said David Gilmore, partner at FX Analytics. The dollar fell against the yen by 0.71 percent, last trading at 111.99 yen.
The U.S. dollar rose on Monday as the British pound fell on news that Brexit negotiations with the European Union over Northern Ireland remain in flux and as the euro continued its slide on political uncertainty over Italy's budget.