The dollar moved higher against the yen on Tuesday, snapping three days of declines as markets attempted to shake off concerns over trade tensions and a tech selloff that sent Wall Street plunging on Tuesday.
USD/JPY was up 0.34% to 106.25 by 07:53 AM ET (11:53 AM GMT), pulling away from Monday’s low of 105.65.
The Japanese yen, typically viewed as a safe-haven currency, tends to be sought out by investors during times of political or economic uncertainty.
U.S. stock futures pointed to gains at the open on Wall Street on Wednesday, despite losses in Europe and in Asia overnight, but investors remained cautious as tech shares remained under pressure.
A selloff in U.S. markets on Monday sent the S&P 500 into correction territory. Tech shares have been hit by a raft of concerns in recent weeks, including a series of tweets by U.S. President Donald Trump criticizing Amazon.
Investors also attempted to shake off concerns over growing trade tensions between the U.S. and China, after Beijing imposed extra tariffs on certain U.S. imports. The move escalated a trade dispute between the world’s two largest economies and stoked concerns about the impact on global growth.
The Trump administration is expected later this week to publish a list of Chinese goods that could be subjected to new U.S. tariffs.
The dollar was fractionally higher against a currency basket, with the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, last at 89.75.
The euro was little changed against the dollar, with EUR/USD at 1.2300, off an intra-day high of 1.2336.
The pound was also almost unchanged against the dollar, with GBP/USD last at 1.4045 after rising as high as 1.4089 earlier.