The dollar pushed higher against the yen on Monday but gains were held in check amid ongoing worries over U.S. – China trade tensions and following Friday’s weaker-than-expected U.S. jobs report.
USD/JPY was up 0.17% to 107.10 by 03:14 AM ET (07:14 AM GMT), after ending Friday’s session down 0.42%.
The dollar slumped on Friday as fresh fears over the prospect of a trade war between the world’s two largest economies and the disappointing employment data weighed.
The safe haven yen tends to be sought out by investors during times of political or economic uncertainty.
China said Friday that it was prepared to hit back “forcefully” if U.S. President Donald Trump followed through on a threat to impose $100 billion in additional tariffs on imports.
Worries that protectionist trade policies might result in a full blown trade war have fueled fears over the impact on the global economy and U.S. growth, but investors are hopeful that negotiations will result in a compromise.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up 0.1% to 89.92.
The dollar showed little reaction following reports of a suspected U.S. missile attackon a major Syrian air base. Washington denied it had launched any air strikes against the country.
The euro slipped lower, with EUR/USD down 0.11% to 1.2268, holding above the one-month low of 1.2215 seen ahead of Friday’s U.S. jobs data.
The Labor Department reported that the U.S. economy added the fewest jobs in six months in March, but wage growth picked up slightly, indicating that the labor market is continuing to tighten.
The data did little to alter the outlook for monetary policy. The Federal Reserve raised interest rates last month and projected two more rate hikes this year.
Sterling was almost unchanged against the dollar, with GBP/USD last at 1.4096.