On Tuesday , Asian indices edged up, as equity investors prepared for an expected U.S. interest rate cut this week while heightened concerns in currency markets about a no-deal Brexit sent the pound to a 28-month low.
The pound extended an overnight slump and fell to $1.2210 , its lowest level since March 2017.
Sterling has suffered as investors scrambled to price in the possibility that a last-minute agreement to avert a no-deal Brexit may not be realized under British Prime Minister Boris Johnson, who has said the Brexit divorce was dead.
The U.S. Federal Reserve begins a two-day policy meeting later on Tuesday, at which it is widely expected to lower interest rates by 25 basis points.
Prospective monetary easing by the Fed has been a key factor behind the recent bull run by global equities, particularly U.S. stocks.
U.S.-China trade negotiations due to begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures.
The British government said on Monday it assumed there would be a no-deal Brexit because a "stubborn" EU was refusing to renegotiate their departure.
The dollar index against at basket of six major currencies was a shade higher at 98.084 and not too far from 98.165, a two-month top scaled on Monday on the back of better-than-expected U.S. GDP data.
The greenback was 0.1% higher at 108.900 yen after brushing a three-week high of 108.950.
Immediate focus for the yen was on the Bank of Japan's two-day policy meeting due to end later on Tuesday.
The BOJ is widely expected to sand pat on policy, although some expect it to tweak its forward guidance -a pledge central banks make on future monetary policy moves- with the central bank under increasing pressure to keep up with its dovish peers.
The euro was unchanged at $1.1137 after edging up 0.15% the previous day.
Crude oil prices added to the previous gains, when the stronger-than-expected U.S. GDP strengthened the outlook for oil consumption by the world's largest economy.
U.S. crude futures were up 0.6% at $57.22 per barrel and Brent crude added 0.5% to $64.03.
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