The pound made gains against the dollar, hitting a one-month high as the coronavirus and a drop in oil prices has left global markets shaken. Expectations for more rate cuts would typically hurt the pound, but the size of the dollar’s fall more than offset any selling pressure. The pound hit a more than one-month high against the dollar and was last up 0.7% at $1.3141, after earlier reaching $1.32, its highest since early February.
Against the euro, the pound was down 0.9%, as the single currency gained alongside other low-yielding currencies such as the Swiss franc and yen.
GBPUSD opened at 1.3176 having hit a high of 1.3198 in early trading but then fell to a low of 1.3069 in the afternoon. A recovery later in the day saw the pair close at 1.3137
GBPEUR opened near a high of 1.1546 and after a volatile day, the pair finished lower at 1.1473
The U.S. dollar fell across the board on Friday, posting its most significant weekly loss in four years, as a sharp drop in U.S. government bond yields damaged the greenback’s appeal. The dollar index was about 0.7% lower, after slipping to a 13-month.
The euro was about 0.7% higher at an eight-month high. Against the Japanese yen, the dollar was down 0.6%, a more than six-month low. Currency volatility gauges rose on Friday, with one-month euro-dollar implied volatility reaching its highest since November 2018.
The dollar found little support from data that showed U.S. employers maintained a robust pace of hiring in February, giving the economy a substantial boost as it confronts the outbreak that has stoked fears of a recession.
EURUSD opened at 1.1433 and managed to make steady gains across the day to close near a high of 1.1473