The British Parliament still divide, when or even if to engineer Britain’s departure the European Union.
The yen rose against the U.S. dollar and the Australian dollar as some investors sought a safe haven amid doubts about Brexit and efforts to de-escalate a bruising trade war between the United States and China.
A decline in equities and a rise in U.S. Treasury prices in Asia underscored investors’ aversion to taking on big risks as the drama over Britain’s departure from the EU grows increasingly complex by the day.
On Tuesday, British lawmakers voted by 329 to 299 in favour of Prime Minister Boris Johnson’s Brexit plan, but then opposed Johnson’s extremely tight timetable to complete the legislative process in three days by 322 to 308 votes.It is now up to the EU to decide whether to extend Britain’s Oct. 31 deadline for its departure from the bloc, although there is hope Britain can avoid the worst case scenario of leaving the EU without any deal in place.
With no major economic data scheduled in Asia on Wednesday, traders will be left to ponder whether Britain will hold a general election to break the impasse.
“The pound will adjust in a narrow range for the time being,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.