The dollar dipped to a near three-week low against the yen in thin year-end volume on Tuesday as investors favored riskier assets, led by renewed optimism about global growth.
The greenback was off 0.2% at 108.64 against the Japanese yen, the weakest since Dec. 12 and on track for its third straight session of losses.
The dollar index, which measures the currency against a basket of rivals, was a shade weaker at 96.695.
Sterling was last treading water at $1.3115 against the dollar after rising 2.8% so far this year. Concerns that Britain is headed for a disruptive “hard Brexit” at the end of 2020 have hurt the pound since mid-December.