The U.S. dollar held near mid-2018 lows on Monday as bullish sentiment across global markets prompted investors to buy riskier currencies such as the Chinese yuan, despite a resurgent pandemic.

The U.S. dollar edged higher on Thursday, while sterling gained in a holiday-thinned session, after Britain and the European Union struck a post-Brexit trade deal, raising hopes the United Kingdom can avoid a turbulent economic departure at the end of the year.

The dollar slipped on Wednesday, after gaining for three straight sessions, as risk appetite rose on the expectation of an imminent Brexit trade deal between the UK and the European Union.

Sterling rose around 1% on Wednesday and British government bond yields posted their biggest one-day rise in more than a month on signs that Britain and the European Union were on the brink of clinching a deal to govern trade ties.

Sterling firmed on Wednesday after three days of falls as France lifted a partial border blockade aimed at stopping the spread of a fast-spreading new COVID-19 strain, and hopes grew of a post-Brexit trade deal despite discouraging comments from both sides.

The dollar rose on Tuesday in thin trading, as concerns about a coronavirus variant raging in Britain that has caused lockdowns and travel restrictions have dampened optimism about a U.S. stimulus bill that Congress passed overnight.

Sterling fell on Tuesday as Britain remained stuck in COVID-19 isolation due to a new coronavirus strain, although hopes of progress in Brexit talks helped to take some pressure off the British currency.

The dollar fell from 10-day highs on Monday in a holiday-shortened week, as investors looked past concerns about a fast-spreading new coronavirus strain prevalent in Britain and focused on the U.S. stimulus package set to be voted on by Congress.

Sterling fell against the dollar and euro on Monday as more countries cut transport ties with Britain, where a fast-spreading new strain of the coronavirus had broken out.

The dollar rose on Friday from 2-1/2-year lows as doubts about an agreement on U.S. COVID-19 aid and Brexit trade negotiations deflated investor confidence.

Sterling fell on Friday, reversing some of its recent gains, after European Union chief negotiator Michel Barnier warned that there were just hours left to reach a Brexit trade deal with London.

The dollar fell to its lowest in more than two years against major currencies on Thursday as U.S. lawmakers wrangled over stimulus details, while Bitcoin rose to a record high, amid surging interest from larger investors.

Sterling rose to $1.36 on Thursday, building on a 2-1/2 year high against a struggling dollar as reports of progress in Brexit trade talks boosted appetite for the British currency, while the Bank of England kept its stimulus programme unchanged.

The U.S. dollar zigzagged to a session high and back on Wednesday after the Federal Reserve disappointed investors expecting a shift toward more purchases of longer-dated bonds, while investors kept their focus on Bitcoin, which smashed through $20,000 for the first time.

Positive soundings from the European Union on Brexit talks helped lift the British pound on Wednesday above $1.35 and to its highest level against the dollar since May 2018.

The dollar hovered close to two-year lows on Tuesday as progress toward a massive U.S. government spending bill and COVID-19 relief measures boosted spirits while investors hoped for ongoing cues of easy monetary policy from the Federal Reserve's final meeting of the year.

The pound rose on Tuesday as markets grew more optimistic a Brexit deal would be reached, even as implied volatility gauges pointed to further price swings ahead of the Dec. 31 deadline.

The dollar hovered near two-year lows on Monday as riskier currencies got a boost from progress on COVID-19 vaccines and the possibility of a U.S. coronavirus relief plan.

Sterling held on to gains made against the dollar and the euro on Monday after Britain and the European Union extended discussions on a post-Brexit trade deal beyond the previous day's deadline.

The British pound gained a percent against the dollar and the euro in relief after Britain and the European Union agreed to continue talks on post-Brexit trade beyond Sunday's deadline.