The British pound fell on Tuesday after reports UK Prime Minister Boris Johnson is planning a new Brexit deadline.
The GBP/USD pair fell 0.3% to 1.3293 by 11:09 PM ET (03:09 GMT).
Reuters reported today that Johnson is seeking a hard line on Britian’s transition period after Brexit.
His revised Withdrawal Agreement Bill would require the U.K. to have arrangements to leave the European Union be in place by Dec. 31 next year, according to Reuters which cited British broadcaster ITV.
In other news, Johnson’s Downing Street office said that U.S. President Donald Trump and Johnson discussed an "ambitious free trade agreement” during a phone call on Monday.
"The prime minister spoke with President Trump, who congratulated him on the result of the general election," a Downing Street spokesman said in a statement.
"They discussed the huge importance of the relationship between the UK and U.S., and looked forward to continued close cooperation on issues such as security and trade, including the negotiation of an ambitious free trade agreement."
The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.1% to 96.650.
Other major currency pairs were little changed as traders awaited more details regarding the Sino-U.S. trade deal. Under a deal agreed on last Friday, the U.S. suspended planned tariffs on Chinese goods in exchange for increased Chinese purchases of some American goods.
The EUR/USD pair last traded at 1.1146, up 0.04%.
The USD/JPY pair edged up 0.05% to 109.54.
Meanwhile, the AUD/USD pair lost 0.2% to 0.6865 after the Reserve Bank of Australia hinted at another cut in interest rate early next year.
Minutes from the RBA’s latest policy meeting showed the central bank was “prepared to ease monetary policy further if needed.”
“Members agreed that it would be important to reassess the economic outlook in February 2020, when the Bank would prepare updated forecasts,” the meeting minutes read. “As part of their deliberations, members noted that the Board had the ability to provide further stimulus to the economy, if required.”