Euro

Risk aversion also sent sterling 0.6% lower to $1.2214, despite data showing the British economy was set to grow in the first quarter and confidence was growing

But the news of the Swiss National Bank's support for Credit Suisse did calm the mood somewhat

The dollar-yen pair declined to as low as 127.215, the weakest since May, in the run-up to the Bank of Japan's policy review last week amid rising bets for an end to stimulus

Investors also have around 50 basis points of U.S. rate cuts priced in for the second half of the year, reflecting softer data on inflation, consumer spending and housing

European Central Bank (ECB) governing council member Klaas Knot said interest rates would rise by 50 basis points in both February and March and continue climbing in the months after

The U.S. dollar index, which measures the currency against six peers and weights the euro most heavily, rose 0.19% to 106.63.

The euro fell 0.6% against the dollar to $1.0284 at 1130 GMT, after rising to a three-month high during Asian trading hours

The euro climbed back above parity against the dollar for the first time in a month on Wednesday after poor U.S. economic data reinforced speculation that the Federal Reserve will slow rate hikes

Sunak will become Britain's next prime minister, Downing Street said on Monday. Sunak was due to meet King Charles on Tuesday morning before speaking outside No. 10 Downing Street

Inflation in the European countries using the euro currency has broken into double digits as prices for electricity and natural gas soar, signalling a looming winter recession for one of the globe's major economies as higher prices undermine consumers' spending power. Consumer prices in the 19-country eurozone hit a record 10 per cent in September, up from 9.1 per cent in August, EU statistics agency Eurostat reported on Friday. Only a year ago inflation was as low as 3.4 per cent. Price increases are at their highest level since record-keeping for the euro started in 1997. Energy prices were the main culprit, rising 40.8 per cent over a year ago. Food, alcohol and tobacco jumped 11.8 per cent. Inflation has been fuelled by steady cutbacks in supplies of natural gas from Russia and by bottlenecks in getting supplies of raw materials and parts as the global economy bounces back from the COVID-19 pandemic. The Russian cutbacks have sent gas prices soaring to the point where ...

In the face of nagging doubts about Britain's economic management and the outlook for global growth, sterling was 0.19% lower at $1.0866 at 1125 GMT, after falling to $1.0764 earlier

Sterling was set for its biggest weekly decline against the U.S. dollar in two years after it touched a fresh 37-year low of $1.1022. The pound was last down 1.9% at $1.1049.

The foreign-exchange stockpiles Asian economies built up have helped cushion the impact of this year's market turmoil, which has spurred the largest equity outflows for at least a decade.

In addition, ECB policymakers see growing risks they will have to raise their key interest rate to 2% or more to curb record inflation in the euro zone

The news of Ukrainian advances also helped lift the euro, which extended last week's post European Central Bank (ECB) gains to rise to its highest against the dollar in almost four weeks

The dollar took a breather from its surging rally on Friday as markets digested yet more hawkish Fed speak, while the euro hung on to parity by an outsized rate hike from the European Central Bank

The euro fell below 99 cents for the first time in nearly two decades, while sterling was on the ropes on Monday as Russia's halt on gas supply down its main pipeline to Europe sparked concerns

The euro touched $0.9903 in early Asia, just above last month's trough of $0.99005. Sterling hit a 2-1/2-year low at $1.1458

By comparison, bets for a 75 bps increase by the Fed on Sept. 21, while higher at 70%, have receded from as much as 75% on Monday

The dollar held onto recent gains against the euro and sterling on Friday ahead of Federal Reserve Chair Jerome Powell's widely-anticipated speech, which traders hope will offer clues on the U.S. cent