The US dollar weakened on Friday, pressured by shifting expectations for monetary policy and renewed optimism that diplomatic efforts could ease tensions between the United States and Iran.

The British pound dipped on Friday after data revealed the UK economy unexpectedly contracted in the three months to October. Economic activity fell by 0.1% from August to October, with October alone also down 0.1%, according to the Office for National Statistics. Analysts had predicted no growth during this period.

Sterling edged slightly higher against the U.S. dollar on Tuesday and held steady versus the euro as investors awaited the Federal Reserve’s policy decision later in the day and key UK GDP data due on Friday.

Sterling strengthened on Wednesday, rising against both the euro and the U.S. dollar as investors reacted to shifting interest rate expectations and signs of a more resilient UK economy.

Sterling steadied on Monday after last week’s sharp fluctuations, trading slightly stronger against the euro and holding steady versus the dollar. The pound remains well above recent lows following Friday’s turbulence, which saw its weakest level against the euro since early 2023.

Daily trading of the Chinese yuan has surged to $817 billion, continuing a decade-long rise in global usage.

The pound has dropped to its lowest level in nine months, following a rise in UK government borrowing costs.

The Syrian pound has strengthened against the US dollar by at least 20 percent over the past two days amid an influx of Syrians from neighbouring countries and an end to strict controls on trade in foreign currencies after the fall of Bashar Assad regime, News.az reports citing TRT World.

The British pound rose to its highest level against the euro in more than two and a half years, as traders bet the Bank of England (BOE) will adopt a less aggressive stance on interest rate cuts compared to the European Central Bank (ECB).

The currency market is experiencing significant fluctuations due to global economic trends and political changes. The euro has strengthened against the US dollar, increasing by 0.43% to 1.0955. This is driven by positive economic data from Europe and expectations of an interest rate hike by the European Central Bank, reflecting investor confidence in the eurozone economy.