The dollar steadied in Asian trading on Friday but remained near two-week lows against the yen after tensions rose in Iraq and downbeat U.S. economic data gave investors no reason to believe the Federal Reserve will be raising interest rates anytime soon.
By contrast, the pound gained over a cent overnight to five-week highs after Bank of England Governor Mark Carney said on Thursday that British interest rates could rise sooner than financial markets expect. The pound was last up 0.1 percent to buy $1.6944.
Carney also said the central bank would carefully weigh the merits next week of tackling housing market risks, including an undesirable loosening in mortgage underwriting standards.
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