With statements from U.S. Treasury Secretary Steven Mnuchin, the dollar is off from 5 month low against the yen on Tuesday.
Tuesday’s economic discussion between the United States and Japan made dollar capped by nervousness. In between tensions of North Korea and the presidential elections of French also made dollar low versus the safe-haven yen.
About the views of U.S president, Mnuchin told, he agrees with him on the point that strength of dollar in the short term was surely hurting exports. But, they are hopeful that currency will gain strength in long-term.
The dollar was up 0.1% at 109.040 yen after gaining briefly to 109.225. Dollar has seen a five-month low of 108.130 earlier on Monday because of the worries about Korean Peninsula.
“For dollar/yen, the main focus will be on what kind of pressure the United States could apply on Japan as basically U.S. trade policy is linked with a policy for a weaker dollar,” said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo. “The yen cannot simply continue weakening along with higher stocks under such conditions,” he said.
“Trump appears to have made a concession regarding China, a key player in the North Korean situation,” said Makoto Noji, senior strategist at SMBC Nikko Securities, referring to last week’s U.S.