Uncertainty about Ireland’s debt crisis has helped support the dollar recently as markets remain focused on Ireland’s financial woes. Eurozone ministers have screwed the Irish into accepting a joint European-IMF mission to Ireland that could prepare the way for a bailout to prevent its debt crisis spreading to other countries.

Currencies are see-sawing as year end book closing has prompted a lot of short dollar positions built up over the past couple of months to unwind, exacerbating losses in the euro.

The Pound could come under pressure should Ireland resist assistance given UK banks’ large exposure to the country.

Sterling edged up against the dollar and euro on Wednesday after an unexpected fall in jobless benefit claims and as the Bank of England showed it had held its three-way split at its latest policy meeting.

Data showed the number of Britons claiming unemployment benefit fell by 3,700 in October, the first fall since July and confounding expectations for a rise of 5,000.

Separately, minutes from the Nov 3-4 BoE Monetary Policy Committee meeting showed one member wanting more stimulus, another voting for a rate hike and the remaining seven keeping policy on hold and ready to act in either direction.

That was likely to reinforce expectations policy would remain on hold well into next year until the outlook for the economy became clearer.