* Pound seen aided by Bloomberg report on May's Brexit plan
* DXY slips from 7-month highs hit on rate hike expectations
TOKYO Oct 12 The dollar slumped in early Asian
trading on Wednesday, pressured by sterling's partial rebound
from its dramatic losses in the previous session.
The pound was up 1.4 percent at $1.2287, after
tumbling as low as $1.2086 on Tuesday, heading towards last
Friday's 31-year low of $1.1450 hit as investors feared the
impact on Britain from quitting the European Union.
Sterling benefited from a Bloomberg report that British
Prime Minister Theresa May has accepted that Parliament should
be allowed to vote on her Brexit plan.
"May will accept voting at the Parliament, which is giving
the pound a short-term boost, but I'm not sure it's
long-lasting," said Masafumi Yamamoto, chief currency strategist
at Mizuho Securities in Tokyo.
"It's latest fall was too much and too rapid, so it's
natural to see some rebound," he said. "It seems the dollar's
weakness against sterling today is affecting the other dollar
currency pairs as well, which is also natural."
The dollar index, which tracks the greenback against a
basket of six major rivals, slipped 0.2 percent to 97.533
after rising as high as 97.758 on Tuesday, its loftiest peak
The dollar edged down 0.1 percent to 103.40 yen,
while the euro was steady at $1.1054, recovering from a
dip as low as $1.1049, its deepest nadir since early August.
The dollar had been on an upswing due to rising expectations
that the U.S. Federal Reserve would raise interest rates as
early as this year, with markets pricing in around a 70 percent
chance of a hike in December.
Investors awaited the minutes of the Federal Reserve Open
Market Committee's September meeting, scheduled to be released
later on Wednesday, as well as U.S. retail sales data on Friday,
for clues as to how close the U.S. central bank is coming to
hiking interest rates.
The dollar has also benefited as Democratic presidential
nominee Hillary Clinton widened her lead in opinion polls over
Republican rival Donald Trump.
(Reporting by Tokyo markets team; Editing by Eric Meijer)