The dollar dropped to a three-month low on Friday as safe-haven buying eased and risk sentiment improved on hopes of progress in trade negotiations between the United States and China, as well as increased chances of an orderly British exit from the European Union.

Sterling rose to a more than three-month high versus the dollar on optimism about Brexit, while the euro advanced to a three-week peak as risk appetite rose.

At the same time, other safe-haven currencies such as the yen and Swiss franc slid on the day.

In afternoon trading, the dollar index was down 0.4% at 98.307 , after earlier declining to a 3-1/2-month low of 98.197.

Source : Reuters