Currencies

China's central bank plans to scrap reserve requirements for financial institutions settling foreign exchange forward yuan positions with effect from Monday, four sources with direct knowledge of the matter said on Friday.

Britain's pound jumped above $1.31 for the first time since early August on Thursday, pulled up by a euro that was stronger across the board on the view that the head of the European Central Bank had not tried to strongly talk down the euro.

The euro jumped to a nine-day high on Thursday and bond yields fell as the European Central Bank broadly stuck to its outlook for growth and inflation while expressions of concerns at the single currency's strength were insufficient to rein it in.

The Federal Reserve provided $35 million (26.78 million pounds)of liquidity to foreign central banks in the latest week via its swap lines for foreign central banks, the New York Fed said on Thursday.

Sterling hit its highest in a month against the dollar on Wednesday, a day after its biggest rise in nearly two months, as investors trimmed some bearish bets before parliament discusses the European Union repeal bill.

The euro pared its earlier gains against the dollar on Wednesday in the wake of a Bloomberg report, citing euro-area officials familiar with the matter, that the European Central Bank was unlikely to reach a decision on reducing its bond purchase before October.