* Dollar/yen hits 9-day high, euro/dollar near 3-1/2-wk low
* Relief as currencies not high on U.S.-Japan summit agenda
* Dollar resumes rise on tax reform hopes
By Shinichi Saoshiro
TOKYO, Feb 13 The dollar gained against the yen
early on Monday, with the market breathing a sigh of relief as
the closely watched two-day U.S.-Japan summit held over the
weekend was seen to have ended smoothly.
U.S. President Donald Trump and Japanese Prime Minister
Shinzo Abe appeared to have established a quick friendship
through a hug, a prolonged handshake and rounds of golf,
allaying investor fears of the meeting ending acrimoniously with
Trump talking tough on trade, currency and security issues.
The dollar index against a basket of major currencies was up
0.15 percent at 100.940, close to a near two-week high of
101.010 reached on Friday when pledges of "phenomenal" tax
reforms by Trump had boosted the greenback.
The dollar was up 0.65 percent at 113.910 yen,
briefly touching a nine-day high of 113.950.
"There is relief that the summit ended without
confrontation, and that the joint statement did not directly
touch upon currencies issues," said Masafumi Yamamoto, chief
forex strategist at Mizuho Securities.
There was concern prior to the summit that Trump would
reiterate accusations that Japan was one of several countries
devaluing their currencies to the disadvantage of the United
"While the outcome of the U.S.-Japan summit itself is not a
huge dollar boosting factor, the currency continues to receive
firm support from expectations towards Trump's 'phenomenal' tax
plans," Yamamoto said.
Trump said his administration will be announcing "something
phenomenal in terms of tax" over "the next two or three weeks"
during a meeting with airline executives on Thursday.
The president's comments increased risk appetite, sending
Wall Street shares to record highs, in turn lifting U.S.
Treasury yields from multi-week lows to the dollar's advantage.
The market's mear-term focus was on Federal Reserve Chair
Janet Yellen's congressional testimony scheduled for Tuesday and
Wednesday, with investors keen to gauge her stance after the
central bank upgraded its inflation views earlier this month.
The euro was down 0.2 percent at $1.0623, dipping
close to Friday's 3-1/2-week low of $1.0608.
The Australian dollar was down 0.1 percent at $0.7669
and the New Zealand dollar also shed 0.1 percent, to
(Editing by Richard Pullin)