The British pound fell in Asian trade on Monday, as Prime Minister May's leadership is under threat, with a report that 40 Conservative MPs are readying a leadership challenge, while Brexit talks face a crucial deadline.
The dollar was lifted against its major rivals as U.S. yields rose and as the pound tumbled, although the main investor focus was still on a planned U.S. tax overhaul.
GBP/USD was down more 0.75 percent to 1.3079, pulling away from an eight-day peak of 1.3229 touched on Friday on better-than-expected data on British industry.
USD/JPY was flat at 113.44 after rising to 113.71. EUR/USD 0.2 percent to 1.1637.
The Aussie dollar lost 0.05 percent to 0.7651 as it edges back towards a 3-1/2-month low of 0.7625 hit at the end of October. The currency has come under pressure with its yield buffer over the greenback shrinking to its narrowest since 2001.
Market participants have pushed out the prospect of a rate hike in Australia, while almost fully pricing in a U.S. rise for December and at least one more next year.
