The dollar and yen eased overnight while sterling crept up from a 31-year low on Tuesday as risk aversion triggered by the shock of Brexit eased slightly, however many market participants are still not calling a bottom for the battered pound.
EUR/USD nudged up to 1.1075, having put a bit of distance from Friday's three-month low of 1.0912. The greenback was also confined to a tight range against its safe-have Japanese counterpart, standing virtually flat at 102.04. On Friday the greenback dropped to 99.00 yen, its lowest since late 2013, when it became clear that Britain had opted to leave the European Union.
The pound climbed more than 0.5 percent to 1.3335 overnight and now trades at 1.3288. Having plunged from highs near 1.5000 on Friday, cable fell as far as 1.3122 overnight, reaching a low not seen since 1985.
In the latest blow for Britain, ratings agencies Standard & Poor's and Fitch downgraded its sovereign credit standing, judging last Friday's vote to leave the European Union would hurt the economy.
