TOKYO (Reuters) – The dollar largely ignored President Donald Trump’s decision to yield to the threat of blocking a COVID-19 aid bill in close negotiations on Monday with many vacation investors.
The pound hovered below a 2-1 / 2-year high in the Asian session, following last week’s narrow Brexit trade deal that does not cover Britain’s financial sector.
The dollar index was little changed at 90,151, after a three-day decline.
The pound sterling rose 0.2% to $ 1.3565, slowly advancing to the $ 1.3625 mark it hit earlier this month for the first time since May 2018.
Trump signed into law the $ 2.3 trillion aid and spending package for the pandemic, avoiding a partial federal government shutdown that would have started on Tuesday.
Previously, he tweeted cryptically: “Good news about Covid Relief Bill. Information to follow! ”He had previously demanded an increase in stimulus checks for struggling Americans from $ 600 to $ 2,000.
The euro changed little by $ 1.2216, close to the $ 1.2273 2 1/2-year high, touched this month.
Although the Brexit deal last week was a relief to investors, the basic nature of the pact leaves Britain much more detached from the EU, analysts say, suggesting that the discount that has affected UK assets since 2016 it will not disappear soon.
Brussels has not yet decided whether to grant Britain access to the bloc’s financial market.
Mitsuo Imaizumi, chief foreign exchange strategist at Daiwa Securities in Tokyo, expects the pound and euro to fall against the dollar, reaching $ 1.30 and $ 1.15, respectively, in late summer.
“Regardless of the deal with Brexit, cable TV will be disabled,” he said.
“It’s buying the rumor, selling the suit.”
The Australian dollar advanced to 76.082 US cents, up from the 2 1/2 year high of 76.390 reached this month.
The yuan rose after China’s central bank raised its official guidance level to the highest in 30 months.
At sea, the yuan rose 0.1% to 6.5200 per dollar, while on land it changed hands at 6.5296.
The dollar weakened slightly to 103,455 yen.
Policymakers in central Japan are divided over how far they should go in examining control of the interest curve, with some calling for a comprehensive review of the structure, a summary of the views expressed in the December rate review, shown on Monday .
Kevin Buckland reporting; Stephen Coates edition