The U.S. dollar hovered in the upper 109 yen range Friday morning, with its upside capped as traders grew cautious after U.S. President Donald Trump complained on Twitter about the United States’ trade deficits with its allies ahead of the Group of Seven Summit.

At noon, the dollar fetched 109.78-79 yen compared with 109.65-75 yen in New York and 109.89-90 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.1799-1799 and 129.53-54 yen against $1.1791-1801 and 129.35-45 yen in New York and $1.1827-1828 and 129.97-130.01 yen in Tokyo late Thursday afternoon.

The dollar drew modest buying in early trading hours on demand by Japanese companies, dealers said.

But the U.S. currency became top-heavy amid speculation that Trump may raise the U.S. trade deficit with other G-7 leaders at their summit starting later in the day in Canada, rekindling concerns that such a move may spark a trade war.

The upcoming summit between Trump and North Korean leader Kim Jong Un in Singapore on June 12 Tuesday also strengthened investors’ cautious mood, prompting them to seek the yen, a perceived safe-haven asset.

The euro traded narrowly against the dollar, while edging slightly up against the yen.

This article provided by NewsEdge.