The yen firmed in late New York trading on speculation that US President Donald Trump is eyeing Japan as the next target in his burgeoning global trade war.
Despite the seemingly cordial personal relationship between Mr Trump and Japanese prime minister Shinzo Abe, which has included multiple meetings and rounds of golf, the US president seems intent on taking a tough line on trade.
The yen gained was ¾ of 1 per cent stronger at ¥110.69 per dollar in afternoon trade in the US on Thursday, just as traders in Australia and New Zealand were getting their feet under the desks on Friday. The yen had been as much as 0.9 per cent firmer against the dollar.