* Dollar/yen slips below 110.00 to 6-week low
* Caution begins to mount ahead of UK elections, Comey
* Aussie slips after current account data disappoints,
* RBA widely expected to stand pat, focus on its economic
By Shinichi Saoshiro
TOKYO, June 6 The dollar hit a six-week low
against the safe-haven yen on Tuesday as caution mounted ahead
of Britain's election, a European Central Bank meeting, and
former FBI Director James Comey's testimony to a Senate
committee - all of which are set for Thursday.
The dollar was down 0.6 percent at 109.770 yen, its
lowest since April 25. Initially buoyed by an overnight bounce
in U.S. yields, it had briefly risen to 110.510 early in the
The greenback has been firmly on the defensive since
Friday's weaker-than-expected U.S. non-farm payrolls report
prompted investors to pare back expectations of future interest
rate increases by the Federal Reserve.
"It's difficult to pinpoint a single factor but the UK
elections and Comey's testimony will take place on the same day,
which is making the market nervous," said Bart Wakabayashi,
Tokyo Branch Manager of State Street Bank.
"The dollar is already on the defensive after Friday's jobs
data, and now its facing potential geopolitical risk in the form
of Comey's testimony."
Comey, the FBI director fired by U.S. President Donald Trump
in May, will be grilled by the Senate Intelligence Committee on
whether Trump tried to get him to back off an investigation into
alleged ties between the president's 2016 campaign and Russia.
In Britain, the latest opinion poll, by Survation for ITV
television, showed Prime Minister Theresa May's lead over the
opposition Labour Party holding at just 1 percentage point ahead
of Thursday's election.
Sterling was a shade higher at $1.2921 following
its rise overnight to a 10-day high of $1.2940.
The euro pared overnight losses and rose 0.2 percent to
$1.1274, edging back towards a seven-month high of
$1.1285 reached on Friday.
The common currency's advance was relatively slow as a
wait-and-see mood prevailed ahead of Thursday's European Central
Bank policy meeting, which is likely to result in another baby
step towards removing the extraordinary monetary stimulus.
The dollar index against a basket of major currencies went
as low as 96.601, its weakest since Nov. 9.
The Australian dollar was down 0.3 percent at $0.7464
after Australia posted current account data for
January-March. The deficit was the smallest in more than 15
years, but it still disappointed investors who had hoped for a
Investors awaited a Reserve Bank of Australia's policy
decision due later on Tuesday for further cues.
The RBA is widely expected to keep interest rates unchanged
at a record low of 1.5 percent and focus was on its stance on
the domestic economy in the wake the recent drop in iron ore
prices, a relatively high unemployment rate and sluggish wage
(Reporting by Shinichi Saoshiro; Editing by Simon