The euro held at its lowest level in more than two years on Friday as quarter-end rebalancing flows boosted demand for the dollar, with investors unfazed by the latest political news out of the United States.

The euro fell 0.1% lower to $1.0904, its lowest level since May 2017. Against a basket of its rivals, the greenback pushed 0.1% higher to 99.27, its highest level in more than three weeks.

Sterling was the other big loser in early London trading after Bank of England policymaker Michael Saunders hinted at looser monetary policy if Brexit uncertainty remained prolonged against a backdrop of disappointing global growth.

The pound weakened 0.3% to a new two-week low of $1.2285 on Friday as his comments raised expectations that the next move from the central bank could be a rate cut.

Source : Reuters