The pound edged up Thursday in Asia after Britain and its EU partners agreed to once again extend the deadline for Brexit, days before the cut-off for avoiding an economically calamitous no-deal divorce.
The extension allows for an earlier exit if May achieves it, with a review taking place on June 21.
News of the delay allowed traders to breathe a sigh of relief and the pound edged up against the dollar and euro, though the gains were limited with the agreement merely kicking the can down the road.
And there remains much uncertainty, with the prime minister under intense pressure from hardline Brexit supporters in her Conservative party not to compromise in her talks with the opposition Labour party, and the discussions are moving slowly.
White House threats this week to hammer $11 billion worth of EU goods with tariffs jolted markets, which have been rallying this year on optimism that China and the US were close to ending their own battle.
The warning revived concerns about Donald Trump's protectionist agenda that has taken aim at all US trading partners.
Regional investors were also unmoved by the latest central bank dovishness.
The Federal Reserve released minutes of its March meeting that reinforced expectations that it will not lift interest rates this year as it keeps an eye on the US economy and brewing risks abroad.
"This is a Fed that's pretty happy to just sit on its hands for the time being and stay on hold and see how some of these cross currents play out."
Tokyo - Nikkei 225: DOWN 0.3 percent at 21,627.87 (break) Hong Kong - Hang Seng: DOWN 0.6 percent at 29,950.14 Shanghai - Composite: DOWN 0.4 percent at 3,228.43 Pound/dollar: UP at $1.3097 from $1.3091 at 2040 GMT Euro/pound: UP at 86.11 pence from 86.09 pence Euro/dollar: UP at $1.1278 from $1.1272 Dollar/yen: UP at 111.08 yen from 111.00 yen Oil - West Texas Intermediate: DOWN 20 cents at $64.41 per barrel Oil - Brent Crude: DOWN eight cents at $71.65 per barrel New York - Dow: UP less than 0.1 percent at 26,157.16 (close) London - FTSE 100: DOWN 0.1 percent at 7,421.
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