The dollar held an upper hand against the yen on Tuesday as optimism on a trade deal between the United States and China dented the allure of the safe-haven unit while the British pound was supported by hopes of an end to a hung parliament.
China's Global Times, a tabloid run by the ruling Communist Party’s official People's Daily, said on Monday on its Twitter feed the two countries are very close to a “phase one” trade deal, discounting “negative” media reports.
The report raised optimism the deal and lifted the dollar against the yen to as high as 109.02 yen a one-week high, by early Asian trade on Tuesday.
The euro softened to $1.1013 near one-week low of $1.10035 touched on Monday.
Sterling traded at $1.2900 supported by hopes that the ruling Conservatives could win a majority in the Dec. 12 election to end a hung parliament.
Against the euro, the British unit stood at 85.365 pence per euro, near six-month high of 85.22 touched Monday last week.
The Australian dollar fetched $0.6776 having touched a one-month low of $0.6768 overnight.
Source : Reuters