the dollar was steady against the other major currencies, as the market recovered from last week’s Brexit vote, in which 51.9% of Britons voted to leave the European Union. The U.S. dollar index was steady at 96.17, hovering close to Monday’s three-month high of 96.86.
Demand for riskier assets also continued to strengthen on Wednesday.
The GBP/USD pair rallied 0.24% to trade at 1.3382, bouncing off the 31-year low of 1.3122 last Monday, the lowest level since 1985. The two-day sterling selloff seen on Friday and Monday was the steepest in recent years.
EUR/USD had barely changed at 1.1064, up Friday’s three-month low of 1.0908. EUR/GBP, on the other hand, dipped 0.31% to trade at 0.8267, lingering near Monday’s two-year high of 0.8378.
The USD/JPY currency pair slid 0.12% to 102.65 after declining to a trough of 99.15 before the weekend, the weakest level since November 2013. USD/CHF eased 0.09% to trade at 0.9810.
The Australian and New Zealand dollars were both strong; AUD/USD and NZD/USD pairs advanced 0.43% at 0.7416 and 0.61% at 0.7091 respectively. However, USD/CAD sank 0.15% to trade at 1.3006.
Meanwhile, the pound came under broad selling pressure as concerns that Brexit could hurt investment in the British economy, jeopardize London’s role as a global financial capital and lead an era of slower global economic growth.
Economy in UK, Japan
Previously, EU officials stated that there would be no special deals from former members of the trading bloc, and that they were to continue the discussion on Brexit repercussions at a summit in Brussels on Wednesday.
Official data revealed earlier today that the UK net lending to individuals grew by £4.3 billion in May after a rise of £1.6 billion the same month. According to analysts, they had expected the amount to increase by £2.9 billion last month.
Meanwhile, traders kept their attention on Japan’s decision on whether they would take any action to weaken the yen if it continued on its streak of strengthening. Japanese Prime Minister Shinzo Abe vowed to utilize all available policy tools to protect the economy from Brexit upshots.
Nonetheless, sentiments are improving as global markets continued their recovery from the referendum shock vote.
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