The dollar sagged on Thursday as the pound led a bounce in European currencies, although skittish emerging market currencies and global trade concerns limited the greenback’s losses.
The Australian dollar also dipped, failing to draw support from slightly better-than-expected domestic trade data.
The catalyst behind the dollar’s fall was the pound, which spiked after Bloomberg reported on Wednesday that the United Kingdom and Germany were prepared to drop a key sticking point in Brexit negotiations.
“The dollar continues to face residual pressure from the buoyant pound amid the latest speculation over Brexit. How long this lift could last remains to be seen, but it is prompting buy backs of other European currencies like the euro and Swiss franc for now,” said Takuya Kanda, general manager at Gaitame.com Research.
