The euro dropped for the fifth straight session, down 0.3% to $1.1483, its weakest since August 1

The dollar rose to a four-month high against the euro on Tuesday as divisions in the U.S. central bank raised doubt about the prospect of another rate cut this year, while a risk-off move sent investors seeking the dollar for safety.

Meanwhile, sterling dropped after the UK finance minister pointed to “hard choices” in her upcoming budget.

Overall market sentiment was noticeably darker, with stocks declining and government bonds drawing demand, while safe-haven currencies such as the yen and the Swiss franc held firm.

I think it’s just an old-fashioned haven bid, said Michael Brown, senior research strategist at Pepperstone, noting strength in both the dollar and the Japanese yen.

The euro dropped for the fifth straight session, down 0.3% to $1.1483, its weakest since August 1. Against the yen, the dollar was 0.4% lower at 153.60 yen, though the Japanese currency remained near a recent 8-1/2-month low.

Despite all the column inches that ‘death of the dollar’ takes up, it does remain the best haven out there in the minds of market participants, Brown said.

With investor risk appetite taking a hit, the Australian dollar shed 0.8% at $0.649, after the Reserve Bank of Australia left its cash rate steady as expected at 3.60% and said it was cautious about further easing.

Sterling dropped 0.9% to $1.3015, after British finance minister Rachel Reeves set out the difficult economic backdrop she was wrestling with, pointing to high debt levels, low productivity and stubborn inflation.

Reeves’ remarks that her budget choices will focus on reducing inflation to prepare for rate cuts are likely to enliven the debate about a (Bank of England) move before year-end and will focus attention on this week’s BoE meeting, Rabobank head of currency strategy Jane Foley said in a note.

Foley said: We would expect the pound to remain on the back foot heading into the November 4 policy meeting given speculation of a dovish tilt.