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Dollar falls below ¥112.50 in Tokyo on Trump worries

JIJI

The dollar slipped below ¥112.50 in Tokyo trading on Wednesday, weighed down by uncertainty over the policy management of U.S. President Donald Trump.

At 5 p.m., the dollar stood at ¥112.44-45, down from ¥113.45-45 at the same time Tuesday. The euro was at $1.1088-1088, up from $1.1028-1028, and at ¥124.68-69, down from ¥125.12-12.

The dollar was hit by selling as skepticism about the Trump administration grew after a news report that he disclosed highly classified intelligence related to the Islamic State militant group to Russian Foreign Minister Sergei Lavrov in their meeting at the White House last week, market sources said.

Trump also came under fire following a media report that he held a meeting in February with then Federal Bureau of Investigation Director James Comey and asked him to end the FBI’s investigation into shady ties between former national security adviser Michael Flynn and Russia.

“The dollar was pressured due to investor concerns over the Trump administration,” an official of a currency brokerage firm said.

“Market hopes for infrastructure investment and tax reform in the United States may recede,” a bank official said.

Although the dollar rose above ¥112.70 in midmorning trading thanks to buying from Japanese importers, the U.S. currency slid to around ¥112.30 on renewed selling in the afternoon.

After the recent U.S. economic data proved sluggish, the dollar’s rebound was weak even though it drew buybacks, a major Japanese bank official said.