By Hiroyuki Kachi

The dollar was flat against the yen and euro during Asia trade on Monday, as investors avoided taking strong positions before U.S. President Donald Trump's address to Congress scheduled on Tuesday.

Meanwhile, sterling lost ground in early Asia Pacific trade, with fresh selling kicking in amid smoldering concerns over the issue of Scotland's independence.

The greenback was changing hands at Y112.18 around 0350 GMT, after falling to Y111.92 earlier in the session. That compared with Y111.95 late Friday in New York. The euro was trading at $1.0563 in midday Asia trade, compared with $1.0565 late Friday.

The WSJ Dollar Index, a measure of the U.S. dollar against a basket of major currencies, was up 0.02% at 90.91.

"Investors are largely taking a wait-and-see stance today and tomorrow," ahead of Mr. Trump's speech, said Yuzo Sakai, manager of FX business promotion at Tokyo Forex & Ueda Harlow.

Tokyo stocks were lower Monday, worsening market sentiment to cause buying of the safe haven Japanese yen. The benchmark Nikkei Stock Average fell 0.7% midday.

But a recovery in the U.S. benchmark 10-year yield during the Asian trading session was giving support to the dollar against the yen, said Mr. Sakai. Investors are taking a breather before they see "an increasing volatility" on every remark from Mr. Trump, said Mr. Sakai.

The U.K. pound fell $1.2392 earlier in the morning session, down 0.6% from around $1.2470 before regaining to $1.2424 midday.

A bout of selling was somewhat exaggerated by thin volume during early morning trade in Asia.

The pound had come under selling pressure on Friday following media reports about the Scottish independence.

Last week, the Independent reported the Scottish government is seriously considering a second independence referendum next year. On Monday, The Times reported that U.K.'s Prime Minister Theresa May is preparing for the Scottish government to call a second independence referendum to coincide with the triggering of Article 50 next month.

In other currency trades, the euro gained moderately to Y118.50 midday from Y118.45 late Friday.

 
Interbank Foreign Exchange Rates At 22:50 EST / 0350 GMT 
 
                           Latest       Previous   %Chg    Daily    Daily   %Chg 
Dollar Rates                               Close            High      Low  12/31 
 
USD/JPY Japan           112.17-18      112.14-15  +0.03   112.25   111.92  -4.13 
EUR/USD Euro            1.0562-65      1.0560-63  +0.02   1.0577   1.0552  +0.42 
GBP/USD U.K.            1.2424-26      1.2459-61  -0.28   1.2460   1.2398  +0.65 
USD/CHF Switzerland     1.0077-81      1.0074-78  +0.03   1.0091   1.0068  -1.08 
USD/CAD Canada          1.3102-07      1.3090-95  +0.09   1.3122   1.3081  -2.51 
AUD/USD Australia       0.7685-89      0.7670-74  +0.20   0.7694   0.7666  +6.73 
NZD/USD New Zealand     0.7191-97     0.7197-203  -0.08   0.7200   0.7187  +3.88 
 
Euro Rate 
 
EUR/JPY Japan           118.46-50      118.39-43  +0.06   118.58   118.25  -3.75 
 
 
Source: Tullett Prebon

Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com

(END) Dow Jones Newswires

February 26, 2017 23:35 ET (04:35 GMT)

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