TOKYO (Reuters) – The dollar set aside President Donald Trump’s decision to cede a threat to block a COVID-19 aid bill on Monday with many holiday investors.
The pound was below the 2-1 / 2-year high in 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 slightly to 90,151, after a three-day slide.
The pound added 0.2% to $ 1.3565, falling back 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 pandemic aid and spending package, avoiding a federal government shutdown that would have begun Tuesday.
Earlier, he had sent a cryptic tweet: “Good news about Covid Relief Bill. Information to follow!” He had previously demanded an increase in stimulus checks for Americans who had problems at $ 2,000, from $ 600.
The euro traded slightly at $ 1.2216, close to a two-and-a-half-year high of $ 1.2273 touched this month.
While last week’s Brexit deal was a relief for investors, the nature of the pact leaves Britain much more detached from the EU, analysts say, suggesting the discount chasing the UK’s assets. United since 2016 will not disappear soon.
Brussels has not yet made a decision on whether to grant Britain access to the blog’s financial market.
Mitsuo Imaizumi, chief FX strategist at Daiwa Securities in Tokyo, expects the pound and the euro to fall against the dollar, reaching $ 1.30 and $ 1.15 by the end of the summer, respectively.
“Regardless of the Brexit deal, the cable will not work,” he said.
“It’s buying the rumor, selling the fact.”
The Australian dollar fell to 76,082 US cents, to a 2 1/2 year high of 76,390 reached this month.
The yuan soared after China’s central bank raised the official guidance level to a 30-month high.
At sea, the yuan rose 0.1% to $ 6.5200 a dollar, while on land it changed hands at 6.5296.
The dollar weakened slightly to 103,455 yen.
Political leaders at the Japanese power plant were divided on the extent to which they should examine the control of the yield curve and some called for a thorough review of the framework, a summary of views expressed in the review of the December rate.
Reports by Kevin Buckland; Edited by Stephen Coates