* Japanese demand underpins dollar, offsets N. Korea
* Euro nurses losses after plumbing three-week lows
TOKYO, April 5 The dollar regained some traction
against the yen in Asian trade on Wednesday, but remained under
pressure after North Korea fired a ballistic missile into the
The launch, which came just ahead of a summit between U.S.
and Chinese leaders, underpinned demand for the perceived
safe-haven Japanese currency, which tends to gain in times of
geopolitical tension or risk aversion.
The dollar got some help from Japanese importers on a
"gotobi" date - a multiple of five - on which accounts are
"Today, there is real demand for the dollar, on 'gotobi,' so
its downside should be limited," said Kaneo Ogino, director at
foreign exchange research firm Global-info Co in Tokyo.
But concerns about the upcoming China-U.S. summit capped the
dollar's upside, as well as rising speculation that U.S.
President Donald Trump will face challenges implementing his
promised policies in the wake of his administration's failure to
pass healthcare reform.
"People want to wait and see how Trump can carry out his
promises when it comes to infrastructure" and tax reform, Ogino
The dollar edged up 0.1 percent to 110.85 yen, moving
away from its overnight low of 110.27, but well below last
Friday's 10-day peak of 112.19 yen.
The dollar index, which tracks the U.S. currency against a
trade-weighted basket of six peers, was slightly down on the day
at 100.50, as slumping U.S. Treasury yields also gave
investors little incentive to buy the greenback.
The benchmark U.S. Treasury yield touched its lowest levels
since February overnight. It last stood at 2.353 percent
in Asian trading, not far from its U.S. close of
2.350 percent. It had been trading at levels above 2.40 percent
as recently as Monday.
The euro, meanwhile, edged up 0.1 percent to $1.0681
after plumbing a three-week low of $1.0636 on Tuesday.
The Australian dollar added 0.1 percent to $0.7569,
pulling away from a three-week low of $0.7545 hit in the
Australia's central bank held rates steady for an eighth
month on Tuesday as widely expected, but expressed concerns over
soaring property prices and weak employment conditions.
(Reporting by Tokyo markets team; Editing by Eric Meijer)