Dollar on course for second weekly gains, Brexit fears weigh on pound
The dollar was on course for its first back-to-back weekly gains since May on Friday as investors turned to safer assets. Meanwhile, the pound was on track towards its worst week since March amid fears about the EU-UK Brexit negotiations.
The dollar was broadly steady in Asian trade. Against a basket of currencies, the greenback is up 0.5% for the week and 1.7% from the 28-month low it hit in early September.
The yen steadied at 106.14 on the dollar. Analysts said that pension fund flows out of Japan offset safe-haven demand as U.S. stocks fell.
The Aussie rose 0.3% to $0.7275, while the kiwi was up 0.1% to $0.66660.
The steady trade in Asia followed Thursday’s bumpy session after the European Central Bank’s meeting and growing fears about the post-Brexit talks.
The euro rose 1% to $1.1917 before falling back to $1.1830. The pound hit a six-week low of $1.2773 and last stood at $1.2812. Against the euro, it sat at 92.32 pence.