The dollar index edged away from three-week lows on Wednesday, as a resurgent sterling gave back some of the gains it made after British Prime Minister Theresa May called an early general election ahead of Brexit negotiations. Sterling gave up 0.2 percent on the day to $1.2823 after rising as high as $1.2908 on Tuesday, its highest since early October, as investors scurried to cover short positions. "May's decision to hold a vote gave sterling a lift higher," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo. The dollar edged up 0.1 per cent to 108.58 yen, while the euro edged down slightly to $1.0719 after riding sterling's coat-tails to three-week highs overnight. The Australian dollar slumped 0.4 per cent to $0.7528 , pressured by sterling's rise as well as a slide in iron ore prices.

Source: The Star April 19, 2017 05:15 UTC