By Hiroyuki Kachi

The yen was a tad weaker against the dollar and euro during midday Asian trade on Thursday, after its recent strength on uncertainties over U.S.-Japan summit this weekend and mounting political risks in the eurozone.

Around 0250 GMT, the U.S. dollar was changing hands at Y112.19 after falling to Y111.70 in early morning trade. That compared with Y119.93 late Wednesday in New York.

The euro was at Y119.87 from Y119.74. The common currency had touched an intraday low of Y119.61 in early trade.

The dollar's rebound in mid-morning trade is ascribed to dip buying from Japanese corporate players including importers for their commercial trade settlements.

Still,investors are cautious about buying the dollar due to uncertain fiscal policy in the U.S. and signs that wages there aren't rising as fast as many had expected, said Marito Ueda, director at FX Prime byGMO. Investors are also shying away from buying the euro given potential political risks related to the French presidential election, he said. "That makes investors inevitable to buy the yen," said Mr. Ueda.

There is also nervousness before Japanese Prime Minister Shinzo Abe's meeting with U.S. President Donald Trump in Washington on Friday. Many are closely watching the U.S.-Japan summit especially after Mr. Trump unnerved Tokyo officials by accusing Japan of having unfairly influenced financial markets and the yen to help its exporters beat U.S. companies.

The dollar has been hovering in the Y111 and Y112 range recently, but is "unlikely to fall to Y110 unless [there's] clear and convincing signs of risk-off incentives," said Nomura Securities chief FX strategist Yunosuke Ikeda.

Mr. Ikeda expects no jawboning--which could fuel a dollar bounce on Monday--and said the dollar will likely be well-supported around the technical chart line of Y111.39.

Currency watchers are closely monitoring results from a 30-year Japanese government bond auction during Tokyo's lunch break. The Japanese yen remained highly volatile against its rival currencies Friday last week, coinciding with strong gyrations in the benchmark Japanese government bond yields.

The WSJ Dollar Index, a measure of the U.S. dollar against a basket of major currencies, was up 0.15% at 90.71.

In other currency trade, the euro was flat at $1.0683 in midday Asia trade from $1.0698.

Interbank Foreign Exchange Rates At 21:50 EST / 0250 GMT

Latest Previous %Chg Daily Daily %Chg

Dollar Rates Close High Low 12/31

USD/JPYJapan 112.18-19 111.93-94 +0.22 112.32 111.77 -4.12

EUR/USD Euro 1.0682-85 1.0697-700 -0.14 1.0701 1.0678 +1.56

GBP/USD U.K. 1.2505-07 1.2539-41 -0.27 1.2543 1.2496 +1.30

USD/CHF Switzerland 0.9959-63 0.9945-49 +0.14 0.9966 0.9939 -2.24

USD/CAD Canada 1.3158-63 1.3143-48 +0.11 1.3169 1.3140 -2.09

AUD/USD Australia 0.7619-23 0.7641-45 -0.29 0.7652 0.7617 +5.82

NZD/USD New Zealand 0.7211-17 0.7260-66 -0.67 0.7267 0.7213 +4.17

Euro Rate

EUR/JPY Japan 119.83-87 119.74-78 +0.08 119.99 119.56 -2.64

Source: Tullett Prebon

Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com

(END) Dow Jones Newswires

February 08, 2017 22:30 ET (03:30 GMT)

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