(Updates prices, adds comments; changes byline, dateline, pvs
* Trump-Abe meeting in Washington expected to be positive
* Trump comments on tax reform continue to boost greenback
* Euro hits more than 3-week low vs dollar of $1.0608
By Sam Forgione
NEW YORK, Feb 10 The dollar gained on Friday on
expectations of a constructive meeting between U.S. President
Donald Trump and Japanese Prime Minister Shinzo Abe, while
Trump's comments on tax reform Thursday continued to support the
Expectations that Abe could signal increased Japanese
investment in the United States underpinned optimism surrounding
the meeting between the two leaders, while Trump's promise on
Thursday of a "phenomenal" tax reform plan over the next two or
three weeks continued to support the dollar against most of its
The euro touched $1.0608, its lowest level against
the dollar since Jan. 19, while the dollar touched 113.85 yen
, its highest against the Japanese currency since Feb. 1.
The dollar index, which measures the greenback
against a basket of six major currencies, rose as much as 0.3
percent to an 11-day high of 101.010. The index later pared
gains and was last up about 0.2 percent at 100.880.
While Trump may discuss his concerns over a strong dollar
with his Japanese counterpart, it is expected that whatever is
said publicly after the meeting will focus on trade and
There was little expectation Trump would reiterate his
recent accusation that Japan was one of several countries
devaluing their currencies to the disadvantage of the United
"It looks as if Abe is coming in determined to maintain the
U.S.-Japan relationship," said Steven Englander, global head of
G10 FX strategy at CitiFX in New York. "It would be a big
surprise if Trump were to complain about dollar/yen."
Trump's tax promise on Thursday, made during a White House
meeting with airline executives, continued to calm some of the
nerves that have dominated currency markets for weeks and put
the focus back on Trump's efforts to boost economic growth. That
reinvigorated dollar bulls.
"This was seen as a pivot back to the economic agenda," said
Vassili Serebriakov, currency strategist at Credit Agricole in
New York, in reference to Trump's statement on tax reform.
"Today is a continuation of that move."
Dealers also said Trump's backing down on surprise early
criticisms of China's "One China" policy helped boost risk
The dollar hit its lowest level against the Russian rouble
since late July 2015 of 58.4486 roubles. Englander of
CitiFX said gains in oil prices on Friday boosted the rouble
given Russia's role as a crude exporter.
(Reporting by Sam Forgione; additional reporting by Patrick
Graham in London; Editing by Meredith Mazzilli)