Risk aversion remained high on Friday morning, though the pound did recover in the later sessions

Sterling initially plummeted to a three-week low against the US dollar on Friday, but recovered some 1.4% through the day to close only marginally down, just over $1.6500.

• Ongoing worries over Dubai's financial sector had the UK currency under pressure on Friday morning as concerns developed regarding the extent of the exposure of the UK banks to Dubai.
  
• In addition, trade continued to be volatile in a holiday-thinned market. US markets were on a shortened session after being closed the previous day for Thanksgiving Day holiday.
  
• However, the pound was able to recover some of its losses through the afternoon session as UK equities made a recovery, weakening demand for the haven currency.
  
• In trading this morning, the greenback is once again under pressure after Dubai soothed concerns about the looming debt default, which has encouraged investors to resume buying riskier currencies.
  
• Currently the pound is trading 0.2% up, despite a weak UK consumer confidence survey, with the price consolidating above 1.6500.