Nervousness before Japanese Prime Minister Shinzo Abe’s meeting with U. S. President Donald Trump in Washington on Friday was keeping a lid on the yen’s strength.
The dollar’s rebound in mid-morning trade in Asia is ascribed to dip buying from Japanese corporate players including importers for their commercial trade settlements.
Still, investors are cautious about buying the dollar due to uncertain fiscal policy in the U. S. and signs that wages there aren’t rising as fast as many had expected, said Marito Ueda, director at FX Prime by GMO.
Investors are also shying away from buying the euro given potential political risks related to the French presidential election, he said. “That makes investors inevitable to buy the yen,” said Mr. Ueda.
There is also nervousness before Japanese Prime Minister Shinzo Abe’s meeting with U. S. President Donald Trump in Washington on Friday.
