The safe-haven yen strengthened on Monday as investors sold stocks and riskier assets including commodities, but the dollar outperformed higher-yielding currencies on fresh talk of an interest rate hike by the Federal Reserve in the near term.
The dollar fell to its lowest in more than a week against the yen on Wednesday as subdued U.S. data made an interest rate increase this month unlikely and drove investors to cut favorable bets in the greenback.
The pound took a pounding in the lead up to and aftermath of the June 23 European Union referendum. But in recent weeks, it has staged a remarkable recovery, even though the Bank of England has decided to cut interest rates to near zero and restarted quantitative easing.
Some of the mainland European stock indices eked out small gains last week despite the falls in United States, UK and Japanese stock markets. However, at the start of this new week, global equities have rebounded across the board while the dollar has extended its gains further against a basket of foreign currencies.