TOKYO (Reuters) - The dollar nursed losses on Tuesday as a return of coronavirus restrictions in some U.S. states and worries about a smooth transition for President-elect Joe Biden offset optimism about a coronavirus vaccine.
The British pound edged higher on media reports the U.K. could reach a post-Brexit trade agreement with the European Union by early next week.
Last week, encouraging progress in coronavirus vaccine testing helped the dollar rise against the safe-harbour yen and the Swiss franc.
However, reaction in the currency market to subsequent developments has been subdued as the United States struggles to contain a second wave of infections, and with vaccine distribution not expected any time soon.
There is also some uncertainty about Biden’s plans to tackle the coronavirus and stimulate the economy as the Trump administration resists cooperation with Biden’s transition team.
Investors in the dollar are looking ahead to the release of U.S. retail sales and industrial production later on Tuesday to gauge the health of the economic recovery.
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