* Graphic: World FX rates in 2020 tmsnrt.rs/2egbfVh * Graphic: Trade-weighted sterling since Brexit vote tmsnrt.rs/2hwV9Hv LONDON, June 30 (Reuters) - The British pound edged lower in early London trading on Wednesday as investors waited to hear whether Britain and European Union will agree to extend a exemption on customs checks on chilled meat shipments to Northern Ireland. The current grace period waiving checks on British-made sausages and other chilled meats moving to Northern Ireland is due to end on Wednesday. British Prime Minister Boris Johnson said on Tuesday that Britain expects to reach an agreement on extending the exemption soon. Dubbed the “sausage row” because the customs checks could have stopped delivery of British sausages from Britain, currency analysts say that the post-Brexit dispute between Britain and the EU has had little impact on the pound so far. ING FX strategists wrote in a note to clients that low volatility means there are unlikely to be big moves in sterling but “the market will take notice of any progress on trade tension with the EU”. “Here a 3-month extension of the waiver on UK exports of chilled meat to Northern Ireland would be welcome.” At 0746 GMT, the pound was down 0.1% against the dollar at $1.38305, holding near a one-week low and on track for its worst month since September. Versus the euro, it was down around 0.1% at 86.065 pence per euro. Euro-sterling implied volatility gauges with one-month maturities were close to their lowest since mid-2019 . After the U.S. Federal Reserve’s surprise hawkish shift on June 16, the dollar has broadly strengthened, hurting the pound. Cable had hit a two-year high of $1.425 at the start of the month, but since the Fed meeting has been mostly in the $1.38-$1.40 range. Investors are also facing uncertainty over the spread of the Delta variant of COVID-19 in Britain, which earlier this month forced the government to delay full reopening. The government has said it will fully reopen pubs, restaurants, nightclubs and other hospitality venues on July 19. Prices charged by British retailers fell slightly faster in June than in May due to a fierce battle between supermarkets, but growing costs linked to COVID-19 and Brexit might add to the rise in broader inflation soon, an industry group said. (Reporting by Elizabeth Howcroft; Editing by Andrew Heavens) Our Standards: The Thomson Reuters Trust Principles.