* Dollar/yen edges up to 13-day high after upbeat U.S. ISM data
* Sterling limps up vs dollar but still in reach of 31-year low
By Shinichi Saoshiro
TOKYO, Oct 4 (Reuters) - The dollar rose against the yen early on Tuesday after receiving a boost from upbeat U.S. economic data, while the pound wallowed near a three-decade low on concerns over a potential “hard Brexit” for Britain.
The dollar added to overnight gains and was up 0.3 percent at 101.925 yen, a 13-day high. The euro was nearly flat at $1.1213 after slipping 0.3 percent the previous day.
The greenback was on the front foot after data from the Institute for Supply Management (ISM) showed on Monday that the barometer for the U.S. manufacturing sector returned to expansion in September.
“The market was relieved as ISM numbers had been weak recently. There might be follow-through buying for the dollar, but it could be difficult for the currency to break out of recent range as the ISM data alone won’t boost the case for the Fed to continuously hike rates,” said Shin Kadota, chief Japan FX strategist at Barclays in Tokyo.
The dollar index nudged up 0.1 percent to 95.787.
The U.S. currency was particularly strong against the pound, which has declined steadily after British Prime Minister Theresa May recently set a March deadline for the formal departure process from the European Union to begin.
While the March deadline offers some clarity to the process and underpinned stocks, many in the market worry that the government’s stance points to a “hard Brexit” where Britain quits the single market in favour of retaining control on migration.
Sterling limped up 0.2 percent to $1.2860 after falling on Monday to $1.2818, coming in reach of the 31-year low of $1.2798 plumbed on July 6 amid the market turmoil following the late June Brexit referendum. (Reporting by Shinichi Saoshiro; Editing by Eric Meijer)