The Swiss franc hit its strongest against the euro in almost three years on Tuesday after the United States added Switzerland to its watchlist of currency manipulators.
The British pound recouped some losses after dropping to its lowest in weeks on Tuesday amid concerns about the state of the economy and talk of a possible cut in interest rates this month.
Speculators cut their net long bets on the U.S. dollar in the latest week to the smallest position in 19 months, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.
The greenback rose to a one-week high against the euro on Friday as economic data pointed to solid economic growth, and reduced fears about an impending slowdown.
The U.S. dollar index held steady on Monday before a heavy week of economic data, while sterling was the weakest performer after tepid growth increased the likelihood that the Bank of England will cut interest rates this month.
Sterling fell sharply on Monday, slipping further below $1.30, after data showed Britain's economy grew at its weakest annual pace in more than seven years in November and raised the chances of a cut to interest rates.
The U.S. dollar edged lower from four-week highs against the safe-haven Japanese yen and slipped versus the Swiss franc on Friday as possible renewed U.S.-Iran tensions weighed on market sentiment.
The pound edged lower on Friday, holding near two-week lows against the dollar as a second policymaker joined Bank of England governor Mark Carney in signalling a potential rate cut.
Foreign exchange investors are increasingly betting that bushfires which have torched a swathe of Australia the size of South Korea will hurt the country's economy, and some are short-selling the Australian dollar in anticipation it will fall.
Britain's pound will gain more than 3% against the dollar this year, supported by interest rate differentials and hopes for a smooth departure from the European Union, a Reuters poll found on Friday.
The U.S. dollar, which has dominated currency market trading for the last two years, looks set to do so again in 2020, according to the latest Reuters poll of foreign exchange strategists.
The Swedish and Norwegian currencies are expected to remain stable against the euro this year and strengthen moderately against the U.S. dollar, a Reuters poll of foreign exchange strategists showed on Friday.
The safe-haven yen fell to two-week lows against the dollar on Thursday, as the United States and Iran moved away from an all-out conflict, prompting investors to take on more risk and shift focus to an upcoming U.S.-China trade deal and a U.S. non-farm payrolls report.
Sterling fell to a near two-week low against the U.S. dollar after Bank of England Governor Mark Carney said there could be a "relatively prompt response" from the bank if the current spell of economic weakness persisted.
The safe-haven yen slid from three-month highs against the dollar on Wednesday, as U.S.-Iran tensions eased after President Donald Trump signaled there would be no further military action, for now, with Tehran appearing to have pulled back from its threats.
The pound erased early gains and fell against the dollar on Wednesday, as investors refocused their attention towards Brexit talks and European policymakers warned Britain could crash out of the European Union without a trade deal in place by the end of 2020.
The safe-haven yen and Swiss franc pulled back from recent highs against the dollar on Tuesday as financial markets stabilized, with investors turning more hopeful that tensions between the United States and Iran would not escalate into an all-out war.
Sterling fell on Tuesday as the dollar rose, with investors watching British lawmakers' return to parliament after the Christmas recess in preparation to vote on Prime Minister Boris Johnson's European Union (EU) withdrawal deal.
The dollar rallied against the safe-haven Japanese yen on Monday, but stayed weaker versus the Swiss franc, as market sentiment remained cautious amid concerns about a broader escalation of Mideast conflicts after the United States killed Iran's most prominent military commander...
Sterling rebounded on Monday as investors who had sold the currency for safe havens after the United States killed Iran's top military commander returned to the pound.
Investors rushed into safe-haven assets on Friday after U.S. air strikes in Iraq killed a senior Iranian military official, sending the Japanese yen to a three-month high, while the U.S. dollar index was knocked by the weakest domestic factory activity in a decade.
Sterling extended its losses against the dollar on Friday, testing one-week lows after downbeat data on construction and consumer demand and heightening worries for an economy showing no sign of emerging from Brexit-linked gloom.
The dollar recovered from a six-month low to rise 0.46% on Thursday, the year's first trading day, after a downbeat December that left the index virtually flat at the end of 2019.
Sterling was on track for its biggest daily loss in more than two weeks on Thursday as euphoria after last month's British election gave way to anxiety over the risk of a no-deal Brexit at the end of 2020.