The dollar wobbled on Thursday after a trade agreement between the United States and Vietnam fuelled optimism over potential future deals ahead of a July 9 tariff deadline, while investors looked to payrolls to assess the Federal Reserves next steps.
Sterling firmed slightly after a sharp drop the previous session as British Prime Minister Keir Starmers office rushed to give Finance Minister Rachel Reeves his full backing, hoping to allay investor worries about Britains finances.
The pound dropped nearly 1 and British government bonds tumbled on Wednesday, as a tearful appearance by Reeves in parliament a day after the government backed down on its welfare reforms reignited concern over Britains finances.
The pound last fetched 1.3647, slightly higher in Asian hours, while the euro was steady at 1.1806, hovering close to the September 2021 top it touched earlier this week. The yen firmed a bit to 143.56 per dollar.
The dollar index, which measures the US currency against six other units, was at 96.701, still near the 3-1/2-year lows it has been rooted to this week. The index is on course for a 0.5 drop in the week.
