Sterling rose to its highest in two months on Monday, as the prospect of steep rate cuts next year by the Federal Reserve dented the dollar, but the pound fell to its lowest since early May against the euro.

The U.S. dollar stumbled to a two-month low on Monday, extending its downtrend from last week as traders reaffirmed their belief that U.S. rates have peaked.

The Pound Sterling eased on Wednesday after data showed British inflation cooled at its fastest pace in more than 30 years in October.

Asian shares inched up on Tuesday in cautious trading ahead of a crucial U.S. inflation report that could heavily influence the Federal Reserve’s policy outlook.

The South African rand extends losses on Friday, capping off a week of losses after hawkish comments from Federal Reserve Chair Jerome Powell helped the dollar rally and decreased risk appetite.

Asian share markets rallied on Thursday and the dollar was weaker after most U.S stocks edged higher and the S&P 500 recorded its longest winning streak in two years

The South African rand weakened on Monday, giving back some of the gains the currency made last week on hopes for the end of the U.S. Fed’s tightening cycle.

Asian shares rallied for a fourth straight session on Monday after markets priced in earlier rate cuts in the United States and Europe.

British bonds were on track for their best day in more than a month on Thursday and stocks jumped after the Bank of England held interest rates steady for a second consecutive meeting.

The South African rand firmed on Wednesday after South Africa’s mid-term budget statement, despite the proposal for tax measures next year to raise additional revenue as budget deficits are projected to widen.

Asian stocks stuttered on Wednesday ahead of a keenly-awaited policy decision from the Federal Reserve later in the day.

The dollar inched broadly higher in cautious trade on Monday and held near 150 yen as traders looked to a policy decision by the Bank of Japan later in the week.

The dollar headed for weekly gain on Friday, aided by solid U.S. growth figures that bolstered the case for higher-for-longer interest rates.

Reuters: The South African rand edged lower against a stronger dollar on Wednesday, taking global direction in the absence of local data.

The pound edged up against the euro, shaking off data that showed the UK labour market lost more steam in August.

The U.S. dollar fell against a basket of currencies on Monday, tracking a retreat in U.S. Treasury yields from the 5% level hit earlier in the session.

The South African rand regained lost ground on Friday against the U.S. dollar while global focus remained on conflict in the Middle East.

Sterling ticked up on Wednesday after data showed UK inflation held steady in September, though above expectations for a slight retreat.

The U.S. dollar drifted on Tuesday on the back foot as investors took stock of developments in the Middle East.

The South African rand stabilised on Friday after a week of volatility, with the focus turning to domestic inflation and retail sales figures this week.

The dollar rose sharply after U.S. consumer prices rose more than expected in September, lifted by an elevated cost of rent that raised the prospect of the Federal Reserve keeping interest rates high for some time.

The dollar hovered near two-week low on Thursday following minutes from the last U.S. Federal Reserve meeting that showed policymakers taking a cautious stance and as investors awaited key inflation data.

Sterling rose on Tuesday, moving further off recent lows and rallying in line with a rebound across markets. The South African rand was broadly unchanged in early trade

The dollar weakened on Tuesday along with U.S. interest rate expectations and a fall in Treasury yields as investors detected a slight dovish shift in Federal Reserve officials’ tone.

The South African rand recovered some losses on Friday after slumping to a four-month low earlier on the back of positive U.S. payrolls data.