Investing.com - The dollar moved lower against the other major currencies on Tuesday, as concerns sparked by Britain’s decision last week to leave the European Union began to ease and investors turned to riskier assets.
GBP/USD was up 0.62% at 1.3309, off the 31-year low of 1.3122 set on Monday, a level not seen since 1985. The two-day selloff in sterling seen on Friday and Monday was the largest in recent history.
Global stock markets suffered the largest two-day rout ever, as a wave of selling wiped around $3 trillion from markets.
Ratings agencies Standard & Poor’s and Fitch Ratings both downgraded their credit ratings for the U.K. on Monday and warned that further cuts are possible.
S&P, the only major ratings agency to maintain a Triple A rating for the U.K., cut its rating by two notches to AA, warning that Brexit posed a risk to the constitutional and economic integrity of the U.K.
Fitch lowered its rating from AA+ to AA, forecasting an "abrupt slowdown" in growth in the short-term.
U.K. Prime Minister David Cameron was to travel to Brussels later Tuesday to discuss the Brexit vote with EU leaders.
EUR/USD rose 0.38% to 1.1067, pulling further away Friday’s three-month trough of 1.0908, while EUR/GBP slipped 0.26% to 0.8313, still close to Monday’s two-year peak of 0.8378.
USD/JPY added 0.20% to 102.20 after falling to lows of 99.15 on Friday, the weakest level since November 2013, while USD/CHF edged up 0.09% to 0.9793.
The Australian and New Zealand dollars were stronger, with AUD/USD up 1.02% at 0.7403 and with NZD/USD jumping 1.07% to 0.7071.
Elsewhere, USD/CAD declined 0.67% to 1.2986.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.39% at 96.17, off the previous session’s three-month highs of 96.86.