The dollar climbed against major peers on Monday with investors seeking its relative safety as many countries tightened Covid-19 lockdowns.
Sterling was the biggest loser in early Asian trading after Britain imposed tough new restrictions to stem a fast-spreading new coronavirus strain.
Meanwhile, Britain said the European Union must shift position after Brexit negotiators failed to find agreement on the weekend, raising the risk that the UK crashes out of the trading bloc’s orbit at the turn of the year with no deal.
The negative sentiment overshadowed a weekend deal among U.S. congressional leaders for a $900 billion coronavirus aid package.
The pound lost as much as 1.1% to $1.3381 before trading at $1.3400. The euro slid 0.4% to $1.22135.
The dollar index gained 0.3% to 90.257, after touching 89.729 on Thursday for the first time since April 2018.
The Aussie dollar dropped 0.5% to 75.895 U.S. cents. Its New Zealand counterpart fell 0.6% to 71.04 U.S. cents.
The greenback gained 0.1% to 103.450 yen, another traditional safe haven.