TOKYO (Reuters) – The dollar largely shrugged off President Donald Trump’s decision to forgo a threat to block a COVID-19 support bill in thin trading Monday with many investors on vacation.
The pound floated below a 2-1 / 2-year high during the Asian session following last week’s agreement on a narrow Brexit trade deal that does not cover the UK financial sector.
The dollar index changed little to 90,151, after a three-day decline.
The British pound added 0.2% to $ 1.3565, falling back to the $ 1.3625 it reached earlier this month for the first time since May 2018.
Trump signed the $ 2.3 trillion pandemic aid and spending package, which prevented a partial federal government shutdown that would have begun Tuesday.
Earlier he had tweeted cryptically, “Good news about Covid Relief Bill. Information will follow! He had previously demanded an increase in incentive checks for troubled Americans from $ 600 to $ 2,000.
The euro changed little at $ 1.2216, near the 2 1/2 year high of $ 1.2273 touched this month.
While last week’s Brexit deal was a relief for investors, the bare nature of the pact is leaving Britain much more detached from the EU, analysts say, suggesting that the rebate that has haunted British assets since 2016 will not be anytime soon. to disappear.
Brussels has not yet made a decision on whether or not Britain will grant the bloc’s financial market.
Mitsuo Imaizumi, chief FX strategist at Daiwa Securities in Tokyo, expects the pound and euro to fall $ 1.30 and $ 1.15 respectively against the dollar by the end of the summer.
“Regardless of the Brexit deal, the cable will go out,” he said.
“It’s buy the rumor, sell the fact.”
The Australian dollar rose to 76,082 cents, towards the 2 1/2 year high of 76,390 reached this month.
The yuan crept up after China’s central bank raised its official target to its highest level in 30 months.
Offshore, the yuan rose 0.1% to 6.5200 per dollar, while onshore it changed hands at 6.5296.
The dollar weakened slightly to 103,455 yen.
Policymakers at Japan’s power plant were divided on how far to go in examining yield curve control, and some called for a comprehensive overhaul of the framework, a summary of views expressed during the December interest rates were voiced.
Reporting by Kevin Buckland; Editing by Stephen Coates