Dollar climbs as oil, stocks recover; sterling falls on Brexit worries

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NEW YORK The dollar climbed to a roughly three-week high against a basket of major currencies on Monday, bolstered by recovering oil prices and stocks as well as losses in sterling and euro amid concern about Britain's possible exit from the European Union.

Sterling was the biggest decliner, sliding to a seven-year trough of $1.4057 GBP=D4 as worries grew about the possibility of a British exit or "Brexit" from the EU.[GBP/] The pound's losses spilled over to other European currencies, including the euro and Swiss franc.

The British pound last changed hands at $1.4149, down 1.78 percent, while the euro was last up 0.82 percent to 77.95 pence EURGBP=. The UK currency came under pressure after popular London Mayor Boris Johnson said he would campaign to leave the EU ahead of a June 23 referendum.

"Johnson pledging to campaign for a Brexit was a big development for the pound and the uncertainty and worries of a Brexit are here to stay until the referendum," said Brittany Baumann, economist at Credit Agricole CIB in New York.

The dollar index rose 0.8 percent to 97.382 .DXY, after earlier climbing to 97.600, its highest since Feb. 3.

">NEW YORK The dollar climbed to a roughly three-week high against a basket of major currencies on Monday, bolstered by recovering oil prices and stocks as well as losses in sterling and euro amid concern about Britain's possible exit from the European Union"The dollar reached a session high against the Swiss franc of 1.00040 francs, its highest since Feb. 4. CHF=EBS

The risk-on sentiment across markets also weighed on the euro, which has tended to be negatively correlated with risk appetite in recent months. The euro fell to a roughly three-week low of $1.10035 EUR=EBS, its biggest one-day fall in more than three weeks.

"People had thought two weeks ago that somehow the G20 would bring down the dollar, but that's not a realistic possibility, so they are comfortable jumping back into their positions," said Greg Anderson, global head of FX strategy at BMO Capital Markets in New York.

The dollar was last up 0.9 percent against the Swiss franc at 0.99835 franc. The euro hit an almost-three-year low against the yen of 124.380 yen, and was last trading down 0.67 percent at 124.46 yen EURJPY=EBS.

The yen has been the chief beneficiary in currency markets during the worst start of a year for stocks since 2009. The dollar last traded up 0.23 percent at 112.880 yen JPY=EBS.

(Additional reporting by Jemima Kelly in London; Editing by Bernadette Baum and Andrew Hay)

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