The dollar rose as investors cut exposure to risky assets and high-yield currencies ahead of a holiday-shortened week in the United States. The pound fell against the dollar, the euro and the yen on concern that the UK’s worst budget deficit since records began would hamper the nation’s recovery. Hans- Guenter Redeker, London-based global head of currency strategy at BNP Paribas SA said: “People are realizing that things are not looking too bright for high-debt countries. People regard sterling as a higher-risk premium.”
The pound fell 1 percent to $1.6509. The pound weakened 0.6 percent to 90.07 pence per euro.