Markets

Forex - Dollar higher against yen after Trump-Abe summit

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Investing.com - The dollar was higher against the yen on Monday amid relief that a weekend summit meeting between U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe went better than feared.

USD/JPY hit highs of 114.17, the most since January 30 and was last at 113.65, up 0.42% for the day.

In the meeting with Abe, Trump avoided repeating accusations that Tokyo uses monetary policy to devalue its currency to the disadvantage of the U.S. and takes advantage of U.S. security aid.

Abe and Trump also agreed to hold an economic dialogue after Trump withdrew the U.S. from the Trans-Pacific Partnership agreement.

Market sentiment was also boosted after Trump agreed to honor the "one China" policy during a phone call with China's leader Xi Jinping on Thursday.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was steady 100.65 not far from the eleven-day highs of 101.02 set on Friday.

Demand for the dollar continued to be underpinned after remarks from Trump indicated that his administration would soon reform tax policy.

Trump said Thursday he would be announcing something over the next two or three weeks that would be "phenomenal" in terms of tax, without providing any additional details.

The euro edged higher against the dollar, with EUR/USD rising 0.14% to 1.0654 as investors continued to watch events in Greece as efforts continued to reach a deal on its next bailout payment before February 20th.

The single currency also remained under pressure amid fears over the possibility of a Brexit or Trump-style shock result in France's upcoming presidential election.

Meanwhile, sterling pushed higher, with GBP/USD up 0.29% at 1.2524.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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