By Hiroyuki Kachi

The U.S. dollar regained some ground against its counterparts in Asian trading on Wednesday, with dip buying kicking in after the dollar's retreat following President-elect Donald Trump's remarks suggesting he favors a weaker currency.

The WSJ Dollar Index, a measure of the U.S. dollar against a basket of major currencies, was up 0.23% at 91.19 around 0350 GMT.

The dollar rose to as high as Y113.14 in late-morning trade after reaching Y112.57 earlier in Asia session, its lowest level since Nov. 30. That compares with Y112.62 late Tuesday in New York. The euro was changing hands at $1.0698, lower than $1.0715 late Tuesday.

The dollar has been under downside pressure in a partial reversal of the currency's strengthening since Mr. Trump's victory in the U.S. presidential election.

The downside bias was amplified by comments from Mr. Trump that the dollar was already "too strong" in part because China holds down the value its currency.

But dip buying appeared to have given support to the dollar's downside. "It's true there are no trading cues to prompt the dollar buying. But also true there are many who are awaiting chance to buy on a dip," said Daiwa Securities FX strategist Yukio Ishizuki.

Mr. Trump's jawboning to stem the dollar's strength could eventually benefit the global economy, said SMBC Nikko chief market economist Yoshimasa Maruyama in a note.

The so-called Trump trade since his November election victory has been supported by a pickup in the global economy since the second half of 2016, said Mr. Maruyama.

But "an excessive strength of the dollar, the product of the Trump trade, now has potential to dampen the global economic pickup," said Mr. Murayama, noting that the dollar strength that started in late 2015 had weighed down emerging economies.

The U.K. pound was slightly lower after a rally overnight on remarks by Prime Minister Theresa May, which investors said suggested Brexit may not be as harsh as feared. Ms. May said the final Brexit deal would be put to a vote in parliament.

The pound rallied more than 2% against the U.S. dollar to touch as high as $1.2417 in early morning Asia trade, erasing its losses from earlier this year. Sterling maintained much of these gains, changing hands at $1.2338 midday.

Among other currency trades, the euro rose to Y120.92 from Y120.69.

 
 
Interbank Foreign Exchange Rates At 22:50 EST / 0350 GMT 
 
                           Latest       Previous   %Chg    Daily    Daily   %Chg 
Dollar Rates                               Close            High      Low  12/31 
 
USD/JPY Japan           113.11-12      112.61-62  +0.44   113.14   112.58  -3.32 
EUR/USD Euro            1.0692-95      1.0712-15  -0.19   1.0716   1.0689  +1.65 
GBP/USD U.K.            1.2339-41      1.2413-15  -0.60   1.2416   1.2330  -0.04 
USD/CHF Switzerland     1.0029-33      1.0014-18  +0.15   1.0036   1.0014  -1.55 
USD/CAD Canada          1.3067-72      1.3039-44  +0.21   1.3075   1.3040  -2.77 
AUD/USD Australia       0.7546-50      0.7565-69  -0.25   0.7570   0.7539  +4.80 
NZD/USD New Zealand    0.7196-202      0.7212-18  -0.22   0.7218   0.7189  +3.96 
 
Euro Rate 
 
EUR/JPY Japan           120.94-98      120.61-65  +0.27   120.97   120.59  -1.74 
 
 
Source: Tullett Prebon

Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com

(END) Dow Jones Newswires

January 17, 2017 23:45 ET (04:45 GMT)

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