Dollar slips below 106 yen as Trump economic adviser resigns

March 7, 2018

Tokyo- The dollar dropped below 106 yen in Tokyo trading on Wednesday, dampened by the resignation of White House National Economic Council Director Gary Cohn on the heels of President Donald Trump's announcement of new import tariff plans last week.

At 5 p.m., the dollar stood at 105.71-72 yen, down from 106.14-15 yen at the same time on Tuesday. The euro was at 1.2406-2407 dollars, up from 1.2333-2334 dollars, and at 131.16-16 yen, up from 130.92-93 yen.

The greenback rose above 106.40 yen in overseas trading the previous day following the announcement of an agreement between Seoul and Pyongyang to hold a bilateral summit in late April.

However, the positive mood was interrupted by US media reports that Cohn, who has opposed Trump's plan to impose tariffs on steel and aluminum imports, will soon leave the White House. His resignation was announced later.

Following the reports, the U.S. currency dived below 105.50 yen early in the morning on Wednesday. It briefly bounced back above 105.80 yen in the middle of morning trading, supported by Japanese stocks' temporary resilience and a rise in long-term U.S. Treasury yields, traders said.

"The view spread that Trump will go ahead with the import restrictions after the key opponent leaves," an official at a foreign bank said.

Amid persistent concerns about the U.S. tariffs, "the dollar could slip below 105 yen if it breaches a recent low just above 105.20 yen," an official at a currency margin trading service provider said. Jiji Press