TOKYO Asian shares edged up to near their highest in two years on Thursday, while the dollar benefited from waning expectations that the European Central Bank was poised to end its easy policy.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was 0.2 percent higher in early trade, pushing against its loftiest levels since June 2015.
The dollar index, which tracks the U.S. currency against a basket of six major rivals, was steady on the day at 100.030 .DXY. It was lifted to a one-week high overnight as the euro slipped on concerns about the impact of Brexit as well as news that European Central Bank policymakers are keen to reassure investors that their easy-money policy is far from ending.
The euro was down 0.1 percent at $1.0752 EUR=, after Reuters reported ECB policymakers were wary of changing their policy message after tweaks this month upset investors and raised chances of a surge in borrowing costs.
Prime Minister Theresa May formally began Britain’s exit from the European Union on Wednesday, launching a two-year negotiation process before the divorce comes into effect in late March 2019.
Sterling edged up slightly on the day to $1.2439 GBP= after skidding to a one-week low of $1.2377 overnight.
“Brexit, to some extent, has been covered in the market already. People went short, covered, and went short again,” said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.
“As for the dollar, demand is still steady from pure commercial orders, but the Japanese fiscal year ends this week and Tokyo investors don’t want to take new positions,” Ogino said.
Against the yen, the dollar added 0.2 percent to 111.25 JPY=, well above this week’s low of 110.110, its…