The British pound fell on Thursday in Asia after U.K. lawmakers voted to reject leaving the EU without a withdrawal agreement. The yuan also slid following the release of below-forecast factory output data.
On Wednesday, U.K. lawmakers voted by 312 to 308 for an amendment that ruled out the U.K. leaving the EU without a withdrawal agreement. Lawmakers are now expected later today to vote for a delay to Brexit on March 29.
The GBP/USD pair initially rallied more than 2% following the news but gave up some of its earlier gains today. The pair last traded at 1.3242 by 12:30 AM ET (04:30 GMT), down 0.7%.
On Thursday, the People’s Bank of China (PBOC) set the yuan reference rate at 6.7009 vs the previous day’s fix of 6.7114.
The U.S. dollar index that tracks the greenback against a basket of other currencies gained 0.1% to 96.648. The dollar was under pressure on Wednesday as the pound rallied on the latest Brexit news.
Overnight, the Labor Department said its producer price index for final demand increased 0.1% last month, but missed economists’ forecasts for a 0.2% increase. In the 12 months through February, the PPI slowed to a 1.9% increase, in line with expectations.
Elsewhere, the AUD/USD pair slid 0.4% to 0.7060 following the release of underperforming Chinese data this morning.
China is Australia’s largest trading partner.