Weakening dollar props up pound as UK parliament vote eyed
* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh
* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
By Saikat Chatterjee
LONDON, Dec 6 (Reuters) - Sterling extended gains on
Thursday thanks to a broadly weak dollar though concerns on how
the British parliament votes on Prime Minister Theresa May's
Brexit deal next week prompted investors to remain broadly
The British currency hit a 1-1/2 year low earlier this week
as May battles to get the Brexit deal she negotiated with the
European Union through parliament in a vote scheduled for
Tuesday with the treaty facing heavy opposition from lawmakers
both for and against Britain leaving the bloc.
But a broadening dollar weakness on Thursday against most of
its rivals on the back of falling U.S. Treasury yields offered
some respite to the battered pound.
Sterling rose 0.3 percent to $1.2787 and moving
further away from a June 2017 low of $1.2659 hit earlier this
week. Against the euro and the yen, the
pound was flat at 89 pence and 143.63 yen respectively.
The proportion of investors looking to raise their holdings
of UK assets fell to 15 percent from 21 percent in the third
quarter, according to a State Street Survey, indicating
investors are growing wary as Brexit talks approach a crunch
The pound and the British stock market top the list of
bearish bets among global investors due to Brexit concerns
though that could lead to a big snap back if an orderly Brexit
or no-Brexit are the outcome.
Currency derivative markets painted a picture of relative
calm on Thursday as investors remained broadly cautious.
(Reporting by Saikat Chatterjee; Editing by Richard Balmforth)
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