Investment havens such as gold and the Japanese yen are gaining attention, with the latter reaching a near six-year high.
Asia stocks look set for gains and US equity futures climb after President Donald Trump suspended his plans for tariffs on Mexico.
The economic growth in Japan is said to be slowing thus resulting in the falling of the yen.
The dollar rose against the euro as a much weaker-than-expected German manufacturing survey raised concerns that Europe's powerhouse economy may be slowing.
Toshiyuki Kanayama, senior market analyst at Monex, says Japanese shares are seen rising at the start backed by rallies in US shares and a cheaper yen.
The dollar was trading at 109.30 yen in Asian afternoon trade, down from 109.48 yen in New York Friday afternoon.
US President Donald Trump is boasting that US-China trade negotiations were going "very well" as Tokyo stocks closed higher on Wednesday.
While the dollar has struggled to extend gains against the euro and the sterling in recent days, it has strengthened against its emerging market counterparts and pinned the Chinese yuan to a two-month low.
An impasse over Brexit talks and global trade tensions have added to the cocktail of negative factors that battered global stocks.
Analysts said the strong dollar-yen environment is also serving as a tailwind to Japanese exporters, though some think it is too early to be optimistic that long-only investors are investing in Japan.
The benchmark Nikkei index fell 129.42 points in early trade while the broader Topix index was down 7.38 points.
Many emerging market currencies were also frail after Argentina's peso sank on Thursday despite the central bank's interest rate hike.
The yen has bucked the greenback’s advance in recent weeks as a Turkey-induced selloff across emerging markets spurs concern of a broader crisis.
Rising demand for SUVs such as the RDX and Pilot in the US is making up for declining sedan sales and helping Honda spend less on incentives to lure buyers.
The arrangement already enables Thailand and Japan to swap their local currencies for the US dollar.
The prime minister says the government will only borrow yen to the value of the US dollar or ringgit debt.
Earnings and US monetary policy have become the main drivers of market sentiment this week.
The US dollar's value increased in relation to the yuan, but decreased in relation to the yen and Swiss franc.
Dr Mahathir berkata, situasi kewangan negara dan hutang besar boleh ditangani dengan adanya pinjaman mudah pada kadar faedah murah daripada Tokyo.
The BOJ has bought 1.9 trillion yen in ETFs in January-March, about 30% of its annual purchase goal, according to data it released on March 30.
The US currency had traded at 104.835 yen after falling to 104.560, its weakest since November 2016.
Japan's surplus with the United States has edged up 3.4% on increased exports in automobiles.
The incident comes after hackers stole US$530 million in digital money from Coincheck last month.
They logged a trade deficit in January, the first negative figure in eight months, as imports of fossil fuel overwhelmed the revenue from exports.
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