The dollar was softer against a basket of rival currencies, with the dollar index trading as low as 96.949 overnight compared to levels around the 97.1 level seen earlier. Dollar/yen was slightly firmer at 110.06, after the pair slipped below the 110 handle earlier in the week.

The Canadian dollar continued to trade around two-month highs, with the greenback fetching 1.3236 Canadian dollars at 6:40 a.m. HK/SIN.

Cable strengthened to trade at $1.2747 after slipping to levels around the $1.26 handle earlier this week on political uncertainty in the U.K.

“Regardless of the current upside gains, the British pound remains vulnerable to heavy losses with the outlook tilted to the downside as political instability in the U.K. weighs heavily on the currency,” FXTM Research Analyst Lukman Otunuga said in a Tuesday evening note.

The hung parliament result following the U.K. election might have prompted optimism for a softer Brexit, but the sterling remained “overshadowed” by instability in Westminster, Otunuga added.

In New Zealand, the current account deficit widened to NZ$8.13 billion in the first quarter on year, compared to a gap of NZ$7.28 billion seen. The kiwi dipped 0.15 percent to 0.7210 to the dollar after the data.

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