3 weeks ago
Forex

Yen Rises as Trump-Kim Summit Ends Abruptly

Investing.com - The Japanese yen, often viewed as a safe-haven currency, was in demand in early European hours on Thursday,

Investing.com - The Japanese yen, often viewed as a safe-haven currency, was in demand in early European hours on Thursday, after U.S. President Donald Trump cut short his nuclear summit with North Korean leader Kim Jong-un.

USD/JPY was down 0.2% at 110.75 by 3:45AM ET (08:45 GMT), falling back towards the prior session's two-week low of 110.34.

"Basically, they wanted the sanctions lifted in their entirety and we couldn’t do that," Trump told reporters.

"We asked Chairman Kim to do more and he was unprepared to do that," added Secretary of State Mike Pompeo.

Earlier, both Trump and Kim had expressed hope for progress on improving relations and on the key issue of denuclearization, in their talks in the Vietnamese capital, Hanoi.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.1% at 95.93, as investors looked ahead to the release of U.S. fourth-quarter GDP data later in the day.

It fell to a three-week low of 95.75 a day earlier, before rebounding as investors remained cautious amid uncertainty over the progress in U.S.-China trade talks.

U.S. Trade Representative Robert Lighthizer told a Congressional hearing it was too early to predict an outcome in U.S.-China trade negotiations in his first public comments since Trump announced a delay to Chinese import tariffs on Sunday.

"One suspects trade headlines will continue to throw around sentiment for a while yet. The issues are complex, the trade-offs real, and opinions divided," ANZ strategists said in a note.

Elsewhere, the pound was a shade lower at $1.3290. It rallied to a seven-month high of $1.3351 on Wednesday as traders ramped up bets that a no-deal Brexit was less likely and that Britain's departure from the European Union would be delayed.

"The push and pull factors for sterling seem set for the short term in that delays and soft Brexit options will lead to strength, with a hard-deal Brexit leading to significant pull backs," noted Nick Twidale, chief operating officer at Rakuten Securities Australia in Sydney.

-- Reuters contributed to this report