Britain's sterling currency rose against the dollar after news of the attack, adding around two cents.
Sterling recovered from a two-month low against the euro on Thursday and rose versus the dollar, extending gains after British police said Jo Cox, a lawmaker for Britain's opposition Labour Party, had died after being attacked earlier in the day.
Sterling gained 0.2 percent against the dollar to $1.4209 GBP= after trading lower for most of the session.
A British member of parliament was shot dead in the street on Thursday, causing deep shock across Britain and the suspension of campaigning for next week's referendum on the country's EU membership.
Jo Cox, 41, a lawmaker for the opposition Labour Party and a vocal advocate for Britain remaining in the European Union, was attacked while preparing to meet constituents in Birstall near Leeds in northern England.
"We have lost a great star," the Conservative prime minister said. "She was a great campaigning MP with huge compassion, with a big heart. It is dreadful, dreadful news."
It was not immediately clear what the impact would be on the June 23 referendum, which has polarized the nation into pro- and anti-EU camps. But some analysts speculated it could boost the pro-EU "Remain" campaign, which in recent days has fallen behind the "Leave" camp in opinion polls.
Finance minister George Osborne and Bank of England Governor Mark Carney scrapped major speeches planned for Thursday evening and the International Monetary Fund said it had delayed the publication of a report on the British economy.
The dollar hit a 21-month low against the yen on Thursday as the yen surged broadly after the Bank of Japan held off from expanding its monetary stimulus.
The dollar fell to 104.06 yen at one point, its lowest level since August 2014. The dollar last traded at 104.14 yen, down 1.8 percent on the day. The greenback had already been under pressure after the U.S. Federal Reserve lowered its economic growth forecasts, cementing expectations that it will have to skip tightening next month, even as the Fed still signalled it was planning to raise rates twice this year.
Federal Reserve Chair Janet Yellen will appear before lawmakers in the House of Representatives on Wednesday to discuss monetary policy and the state of the economy, staff from the Financial Services Committee said on Thursday.
The hearing before the House Financial Services Committee will follow Yellen's testimony before the Senate Banking Committee scheduled for Tuesday.
The dollar .DXY hit two-week highs, then eased back on the sterling's GBP= strength as Britain suspended campaigning over its EU membership status after a deadly attack on a Member of Parliament.
The Labor Department said its Consumer Price Index increased 0.2 percent last month, slowing from April's 0.4 percent gain, as gasoline prices rose modestly and the cost of food fell. In the 12 months through May, the CPI increased 1.0 percent after advancing 1.1 percent in April.
Stripping out the volatile food and energy components, the so-called core CPI increased 0.2 percent after a similar gain in April. That took the year-on-year core CPI rise to 2.2 percent from 2.1 percent in April.
Initial U.S. jobless claims rose by 13,000 to 277,000 in mid-June, but the increase is likely tied to seasonal quirks that could unwind in the next few weeks. Broadly, layoffs nationwide remain low.
Oil pared losses as the sterling rose, but crude tumbled again in post-settlement trade to reach new lows on the day.
Brent crude futures' front-month contact LCOc1 settled down $1.78, or 3.6 percent, at $47.19 per barrel. In post-settlement trade, it fell to as low as $46.94, its lowest since May 12.
Reference: Reuters, The news, Market Watch
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