Shutterstock photo* USD/JPY extends Friday's slide, slips to lowest since Nov2016
* Japanese political woes seen adding to yen's gains
By Shinichi Saoshiro
The U.S. currency traded at 104.835 yenJPY= after fallingto 104.560, its weakest since November 2016.
The dollar had already slumped 1.2 percent versus itsJapanese peer last week as escalating trade tensions between theUnited States and China stoked concerns about global growth.
Global markets were shaken after U.S. President Donald Trumpmoved to impose tariffs on Chinese goods, edging the world's twolargest economies closer to a trade war.
Views that Japan's political scandal could deepen was alsoseen lifting the yen, with a key figure in a cronyism scandalgripping Prime Minister Shinzo Abe due to testify in parliamenton Tuesday. urn:newsml:reuters.com:*:nL3N1R22HX
Economic measures dubbed "Abenomics" initiated by Abe hasbeen a factor that has pulled the yen down over the past fewyears to the benefit of exporters. Any event that leads to adecline in the premier's support ratings is seen weakening hisability to keep Abenomics in place.
"With worries about the United States and China lockinghorns on trade issues and Japan's parliamentary testimony comingup on Tuesday, few participants are willing to buy the dollar,"said Yukio Ishizuki, senior currency strategist at DaiwaSecurities.
"It really is typical 'risk off' trades dominating rightnow, with the yen and Swiss franc the big beneficiaries. Butmore speculators are jumping in, and any reversals could besudden and violent."
The Swiss franc was little changed at 0.9467 franc perdollar CHF= after gaining 0.55 percent against the greenbacklast week.
The euro edged higher at $1.2364EUR= after rising 0.5percent last week.
The dollar index against a basket of six major currencieswas steady at 89.453 .DXY and in close reach of a one-monthlow of 89.356 set last week.
The Australian dollar added 0.3 percent to $0.7714AUD=D4 and the New Zealand dollar NZD=D4 gained 0.35 percent to$0.7250. (Reporting by Shinichi SaoshiroEditing by Shri Navaratnam) ((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging:shinichi.saoshiro.reuters.com@reuters.net+813-6441-1774))
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