Dollar Resilience Amid Market Fluctuations: Sterling on Edge Before BoE Meeting

The dollar remains steady below recent highs due to a rise in risk appetite, while sterling awaits a potential dovish tone from the Bank of England. Other currencies, like the Australian and New Zealand dollars, have rebounded due to improving market conditions and U.S. economic hints.

The dollar remained steady just below recent peaks on Thursday, influenced by a revived appetite for riskier assets. This development curbed the dollar's ascent, while in Europe, the sterling stayed largely flat ahead of a pivotal Bank of England meeting expected to lean dovish.

Against the euro, the dollar stands at $1.1505, slightly weaker than its three-month high of $1.1469 recorded earlier this week. Sterling maintained a level of $1.3065, with the anticipation of the Bank of England's rate decision looming large, amid speculation of a dovish outlook and potential future rate cuts.

Meanwhile, the Australian and New Zealand dollars saw substantial gains following stock market rebounds, despite a notable rise in U.S. yields. This optimism came as U.S. labor reports suggested economic resilience, contrasted by a lack of data due to a prolonged government shutdown.

(With inputs from agencies.)