Sterling climbed on Tuesday after Britain's new finance minister said he would deliver the budget as planned in three weeks, while a broadly weaker euro also lifted the currency.
Sterling reversed its earlier losses on Tuesday and hit a session high against the dollar at $1.3040 after UK Chancellor Rishi Sunak said in a tweet that the annual budget would be unveiled on March 11 as planned.
The U.S. dollar fell across the board on Friday after a survey of purchasing managers showed U.S. business activity in the manufacturing and services sectors stalled in February and as investors fretted over the fast-spreading coronavirus.
Sterling rose against the dollar and euro on Friday after UK purchasing managers indexes showed British factories posted the fastest rise in output for 10 months.
Sterling rose against both the dollar and euro on Friday after UK factories reported the fastest rise in output for 10 months in February, assuaging some fears over the economy as Britain prepares for trade talks with the EU.
The dollar rose on Tuesday to its highest in nearly three years against the euro, which was pressured by a German survey showing slumping investor confidence in Europe's largest economy.
The pound on Monday gave back some of the gains made last week on the back of investors pricing in looser financial conditions under Britain's new finance minister, but remained above $1.30 with speculators maintaining long positions on the currency.
The euro struggled near 3-year lows on Monday as investors worried about weakening growth in the region, while Chinese efforts to limit the damage from a coronavirus outbreak appeared to calm markets, with the yuan and Australian dollar supported.
The euro bounced against the greenback on Friday as U.S. stocks declined from record highs, though concerns about growth in the eurozone are expected to keep weighing on the single currency.
Hedge funds betting that the Swiss franc will climb further against the euro will soon meet their match, according to investors who are taking the other side of the trade.
Sterling held on to most of its overnight gains on Friday and was set for its biggest weekly rise in two months, as investors ramped up expectations the new British finance minister would unveil a more expansionary budget next month.
The Japanese yen held onto gains against the dollar on Friday as renewed worries about the coronavirus outbreak supported demand for safe-haven currencies and weighed on prices of riskier assets.
The euro dropped to more than two-year lows against the dollar on Thursday as concerns about a sharp rise in the number of new cases in the coronavirus outbreak in China led investors to seek out U.S. assets.
The pound jumped on Thursday and bond yields rose as investors positioned for a higher-spending budget next month under a new British finance minister.
The pound extended gains on Thursday after the resignation of British finance minister Sajid Javid, as investors bet that his replacement would pave the way for a more expansionary budget next month.
Brazilian President Jair Bolsonaro said on Thursday he thinks the dollar "is a little too high" against the real, as the U.S. currency surged to another record peak against the real and brought its gains for the year to 9%.
The euro fell to a four-and-a-half-year low against the Swiss franc on Thursday and the yen gained as investors sought safe havens after China's Hubei province, the epicentre of the coronavirus outbreak, reported a sharp increase in the number of new cases.
The yen rose from a three-week low against the dollar on Thursday after China's Hubei province, the epicentre of a coronavirus outbreak, reported a sharp jump in the number of new cases in a jolt to markets and sparking a flight for safe-haven assets.
The greenback rose to its highest against the euro in more two-years on Wednesday, as investors ploughed more money into the U.S. stock market on growing optimism the economic impact of the coronavirus will be contained.
Sterling was a touch firmer on Wednesday, holding its ground against other major currencies in the absence of any major economic data or news related to trade talks with the European Union.
Outsized stock price gains for Apple Inc and Microsoft Corp mean the two tech titans' shares have attained unusual status: a combined weight of 10% of the benchmark S&P 500 index.
The dollar retreated from a four-month high against the euro on Tuesday as risk appetite improved after a weeklong rally helped by a safe-haven bid fueled by fears over China's coronavirus outbreak.
Sterling enjoyed some respite on Tuesday after British economic growth showed no change in the fourth quarter despite market expectations that it would be slower.
The Turkish lira weakened some 0.6% against the dollar on Tuesday as investors grew increasingly concerned about an escalation of violence between Syrian government forces and Turkish forces in northwest Syria.