The dollar was trading 0.05 percent lower vs the yen at 109.76 as of 10:00 GMT on Tuesday, with the dollar taking a firmer position across the board, holding about the 94 level.
The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.11 percent at 93.88 by the time of this writing.
As no major economic releases are due this week, market participants are closely monitoring geopolitical developments. Yesterday, the White House confirmed a time for the historic summit between US President Donald Trump and North Korean leader Kim Jong Un.
Both leaders are set to meet at 09:00 am in Singapore on June 12. The meeting is seen as a major improvement in international relations and a great opportunity to denuclearizing the Korean peninsula.
The yen is seen as a safe-haven currency and therefore, if the meeting sets a framework to achieve peace in the near term, it’s demand could come under pressure. A weaker yen will not necessarily be bad for the Japanese economy, as exporters will certainly benefit in terms of competitiveness.
However, this scenario will open the gates to further gains for the pair, which could possible move above the 110.00 and 111.0 levels.
Ahead in today’s session, traders will keep an eye on the following releases: Markit Economics and the Institute for Supply Management will unveil their services (also non-manufacturing) PMIs for May at 14:00 GMT. JOLTs job openings for April will be out by the same hour.