* Dollar lifted by slumping pound, rebounds from 2-1/2-wk low
* French woes weigh on euro
* Abrupt resignation of c.bank bank head hits Indian rupee
* Graphic: World FX rates in 2018
By Shinichi Saoshiro
TOKYO, Dec 11 (Reuters) - The pound struggled near a 20-month low
against the dollar on Tuesday after British Prime Minister Theresa May
postponed a crucial vote on her Brexit deal.
Sterling was little changed at $1.2565 after slumping 1.3
percent the previous day, when the currency brushed $1.2507, its
lowest since April 2017.
May on Monday postponed a parliamentary vote, which was due to
take place on Tuesday, on her Brexit deal to seek more concessions.
The move stoked more uncertainty as Britain now faces Brexit without a
deal, a last-minute agreement or another EU referendum.
The pound's slide was a boon for the dollar, which rallied back
from a 2-1/2-week low against a basket of currencies initially driven
by a growing view the Federal Reserve could pause its rate hike cycle
sooner than previously thought.
The dollar index, a measure of the greenback's strength versus a
group of six major peers, advanced 0.75 percent on Monday and was back
firmly above 97.00. At one stage in overnight trade it had fallen to
96.364, its lowest since Nov. 22.
"Falling U.S. yields will eventually nudge the dollar into a
downtrend, but probably not at this moment," said Junichi
Ishikawa, senior FX strategist at IG Securities in Tokyo.
"There just isn't enough demand for the yen, which is less of
a safe haven, and the euro, with the political concerns in Europe. And
there is of course the pound which is burdened with Brexit problems."
The 10-year Treasury note yield has dropped to a three-month
low this week, with dovish comments from Fed officials and soft U.S.
data further sharpening views on an imminent pause in the tightening cycle.
The dollar was a shade lower at 113.19 yen after advancing 0.5
The euro was flat at $1.1354 after shedding 0.2 percent on Monday.
The common currency did gain against the struggling pound,
although concerns over violent protests in France against President
Emmanuel Macron's economic reform limited its gains.
The Indian rupee was jolted after Reserve Bank of India Governor,
Urjit Patel, resigned abruptly on Monday after a months-long tussle
over policy with the government that has raised concerns about the
Indian rupee forwards fell more than 1 percent on Monday,
posting their biggest daily slump in more than five years.
The Australian dollar was little changed at $0.7188 after
slipping on Monday to a one-month low of $0.7170.
(Editing by Shri Navaratnam)
((firstname.lastname@example.org; Reuters Messaging: