Signs that the U.S. and China were making progress in efforts to resolve their trade dispute supported both the dollar and trade-exposed Asian currencies on Tuesday, while the Canadian dollar rose as voters went to the polls in a closely-fought election.

The volatile pound sat just under a 5-1/2-month high at $1.2962, with the Brexit project in disarray but traders looking to another crucial parliamentary vote on Tuesday to determine the next step.

U.S. President Donald Trump said in Washington that work toward ending the U.S.-China dispute was going well, while White House adviser Larry Kudlow said tariffs scheduled for December could be withdrawn if progress is made.

The dollar was steady against most major currencies in early Asian trade, holding only a fraction below a three-month high against the Japanese yen at 108.58 yen per dollar.

Source : Reuters