* Dollar/yen edges up to 13-day high after upbeat U.S. ISM
* Sterling limps up vs dollar but still in reach of 31-year
By Shinichi Saoshiro
TOKYO, Oct 4 The dollar rose against the yen
early on Tuesday after receiving a boost from upbeat U.S.
economic data, while the pound wallowed near a three-decade low
on concerns over a potential "hard Brexit" for Britain.
The dollar added to overnight gains and was up 0.3 percent
at 101.925 yen, a 13-day high. The euro was nearly flat
at $1.1213 after slipping 0.3 percent the previous day.
The greenback was on the front foot after data from the
Institute for Supply Management (ISM) showed on Monday that the
barometer for the U.S. manufacturing sector returned to
expansion in September.
"The market was relieved as ISM numbers had been weak
recently. There might be follow-through buying for the dollar,
but it could be difficult for the currency to break out of
recent range as the ISM data alone won't boost the case for the
Fed to continuously hike rates," said Shin Kadota, chief Japan
FX strategist at Barclays in Tokyo.
The dollar index nudged up 0.1 percent to 95.787.
The U.S. currency was particularly strong against the pound,
which has declined steadily after British Prime Minister Theresa
May recently set a March deadline for the formal departure
process from the European Union to begin.
While the March deadline offers some clarity to the process
and underpinned stocks, many in the market worry that the
government's stance points to a "hard Brexit" where Britain
quits the single market in favour of retaining control on
Sterling limped up 0.2 percent to $1.2860 after
falling on Monday to $1.2818, coming in reach of the 31-year low
of $1.2798 plumbed on July 6 amid the market turmoil following
the late June Brexit referendum.
(Reporting by Shinichi Saoshiro; Editing by Eric Meijer)