The dollar held near a 2 1/2-month high against the yen on Monday after Washington and Beijing announced progress towards a trade deal, while sterling hovered near a three-month peak on hopes for an orderly British exit from the European Union.

On Friday, the dollar strengthened against the safe-haven yen to as much as 108.63 yen, its highest level since August 1, before U.S. President Donald Trump said the United States and China had reached a 'Phase 1' trade deal.

In early Asian trade on Monday, the dollar inched down to 108.36 yen against the yen, while the euro stood at $1.1025 versus the greenback, off Friday's three-week high of $1.10625.

The British pound surged on Friday to as high as $1.2708, its strongest level since July 1, and a five-month peak of 86.955 pence per euro on optimism about orderly Brexit. The pound was last down 0.38% at $1.2600 in Asia.

Source : Reuters