The dollar gained against its major peers on Tuesday, reining as the preferred safe haven currency as uncertainty over Brexit negotiations and Italy’s free spending budget spooked investors away from the euro and sterling.
The sterling traded flat at $1.2965 on Tuesday, after losing 0.83 percent of its value on Monday, its steepest fall in percentage terms since Sept. 21. The pound has lost 2.2 percent versus the greenback in the last seven trading sessions.
The euro changed hands at $1.1460 on Tuesday, trading marginally lower versus the greenback.
This risk-off sentiment may bode well for the dollar in the coming days. The greenback has also made gains against the Japanese yen JPY=.
The yen has weakened against the dollar in the four of the past five trading sessions. It traded at 112.71 to the dollar on Tuesday, slightly below its 8-day low of 112.88 hit on Monday.
The dollar index, a gauge of its value versus six major peers, traded at 96.02 on Tuesday, gaining marginally. The next resistance for the index is at its recent peak of 96.15, hit on Oct. 9.
The Australian dollar lost 0.18 percent versus the greenback on Tuesday, changing hands at 0.7065. It lost 0.57 percent on Monday.