Sterling on Tuesday clung to hopes of a meeting between British Prime Minister Boris Johnston and European Commission President Ursula von der Leyen salvaging a Brexit trade deal, while safe-harbor demand gave the dollar support as U.S. virus cases rose.
The British currency was whipsawed as the prospects of Britain and the European Union striking a last-minute deal ebbed and flowed. It shed as much as 1.5% overnight before recouping losses after the leaders’ announced plans to meet in Brussels.
On Tuesday, sterling was on edge but holding on at $1.3353 early in the Asia session, well above Monday’s low of $1.3225.
Other majors had dipped a fraction against the U.S. dollar overnight with a broadly risk-averse mood, though dollar gains were muted as investors overwhelmingly consider it in a downtrend.
The yen held steady at 104.10 per dollar after inching a fraction higher on Monday and the euro was kept firmly above $1.21.