2017.08.1803:39:00UTC+00Dollar Falls Against Yen, Weighed Down by Doubts on Trump Economic Policy

The dollar fell against the yen on Friday, pressured by renewed investor concerns over the Trump administration's ability to move forward with his promised economic policy agenda.

The greenback slipped 0.2 percent to 109.33 yen, retreating from this week's peak of 110.95 yen which was set on Wednesday.

According to analysts, the Japanese yen could add to its gains once global equities decline further, in the aftermath of a selloff in U.S. shares the previous day. The yen often comes in favour in times of market pressure.

Heightened concerns over the Trump administration's ability to push through the economic agenda have rattled investors this week.

How European and U.S. equity markets fare today might prove critical for the greenback's near-term outlook versus the yen, according to Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo. "If the dollar falls below 109 yen, that could set the stage for a test of its year-to-date low of 108.13 yen," Murata said.

The euro rose 0.1 percent to $1.1734 but was 0.7 percent lower for the week, which makes it poised for the currency's first weekly drop since early July.

The common currency dropped to a three-week low of $1.1662 the previous day, following the minutes of the European Central Bank's July 20 policy meeting. The ECB minutes revealed that policymakers are concerned that the repricing of the euro might overshoot.