* Pound seen aided by Bloomberg report on May's Brexit plan
* DXY slips from 7-month highs hit on rate hike expectations
TOKYO Oct 12 The recently buoyant dollar came
under pressure in Asian trading on Wednesday, as sterling
partially rebounded from its dramatic losses in the previous
The pound was up 1.5 percent at $1.2301, after
tumbling as low as $1.2086 on Tuesday, heading towards a 31-year
low of $1.1450 hit on Friday as investors feared the impact on
Britain from leaving the European Union.
Sterling benefited from a Bloomberg report that British
Prime Minister Theresa May has accepted that Parliament should
be allowed to vote on her Brexit plan.
"May will accept voting at the Parliament, which is giving
the pound a short-term boost, but I'm not sure it's
long-lasting," said Masafumi Yamamoto, chief currency strategist
at Mizuho Securities in Tokyo.
"Its latest fall was too much and too rapid, so it's natural
to see some rebound," he said. "It seems the dollar's weakness
against sterling today is affecting the other dollar currency
pairs as well, which is also natural."
The dollar index, which tracks the greenback against a
basket of six major rivals, slipped 0.2 percent to 97.504
after rising as high as 97.758 on Tuesday, its loftiest peak
The dollar edged down 0.1 percent to 103.45 yen,
while the euro was steady at $1.1052, recovering from a
dip as low as $1.1049, its deepest nadir since early August.
The dollar had been on an upswing due to rising expectations
that the U.S. Federal Reserve would raise interest rates as
early as this year, with markets pricing in around a 70 percent
chance of a hike in December.
The dollar has also benefited as Democratic presidential
nominee Hillary Clinton widened her lead in opinion polls over
Republican rival Donald Trump.
Investors awaited the minutes of the Federal Reserve Open
Market Committee's September meeting, scheduled to be released
later on Wednesday, as well as U.S. retail sales data on Friday,
for clues as to how close the U.S. central bank is coming to
hiking interest rates.
"There is an increased probability of bigger interest rate
differentials between Japan and the U.S., so that is a factor
for yen softening, although this is not as big a factor as it
used to be," said Harumi Taguchi, principal economist at IHS
Markit in Tokyo.
Bank of Japan policymakers have signalled they have a higher
threshold for further easing, sticking to their pledge to expand
stimulus but only to protect the economy from external shocks.
BOJ Governor Haruhiko Kuroda made no direct reference of the
need to achieve his inflation target quickly when he reiterated
to Japan's parliament on Wednesday that he remains ready to cut
interest rates or expand asset buying if needed.
(Reporting by Tokyo markets team; Editing by Eric Meijer)