TOKYO (Reuters) – The dollar ignored news that President Trump gave in to a threat to block a COVID-19 aid bill, in close trade on Monday with many holiday investors.
The pound hovered below a two-and-a-half-year high in the Asian session, following last week’s deal on a narrow Brexit trade deal that does not cover Britain’s financial sector.
The dollar index was little changed at 90.224, after a three-day decline.
The pound sterling added 0.1% to $ 1.3544, stepping into waters below the 2 1/2-year high of $ 1.3625, hit earlier this month.
Trump signed into law the $ 2.3 trillion aid and spending package for the pandemic, officials said Sunday night, avoiding a partial shutdown by the federal government.
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 fell 0.1% to $ 1.2199, further decreasing from the 2 1/2 year high of $ 1.2273, 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 dollar changed little at 103.63 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