* Yen hits 11-day high in Asian trading
* Rouble tumbles over 1 percent
* Market focus also on U.S.-China talks, U.S. jobs data
* Euro hits 4 1/2-month low vs yen
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Jemima Kelly
LONDON, April 7 The safe-haven yen climbed
against the dollar and euro on Friday and the rouble tumbled,
after the United States launched cruise missiles at an airbase
in Syria, raising tensions with Russia.
In the biggest foreign policy decision of his presidency so
far, Donald Trump ordered the move after a chemical weapons
attack killed at least 70 people this week. It catapulted the
United States into a confrontation with Russia, which has
military advisers on the ground assisting the Syrian
The rouble skidded around 1 percent, putting it on
course for its biggest one-day falls in a month.
The yen, which investors tend to flock to when they perceive
an increase in political or financial risk, strengthened to an
11-day high of 110.135 to the dollar in Asian trading, in
the immediate aftermath of Trump's announcement.
By 1115 GMT, though, it was up just 0.1 percent on the day
at 110.68 yen per dollar. Stocks also recovered from earlier
The dollar index, which gauges the greenback against a
basket of six major rivals, inched up 0.2 percent to 100.84,
close to a three-week high.
"Asset markets have taken Washington's air-strike against
Syria in their stride, at this stage viewing it as an isolated
response to the horrific use of chemical weapons," said ING's
head of currency strategy in London, Chris Turner.
"Only if the Trump administration started to look at far
more comprehensive foreign policy action, requiring
Congressional approval, might the dollar sell off more."
A weekly U.S. labour market report, due at 1230 GMT, is
expected to show an increase of 180,000 jobs in March, according
to economists polled by Reuters. That could reinforce
expectation the Federal Reserve will deliver two more interest
rate increases this calendar year.
But UBS Wealth Management's head of currency strategy,
Constantin Bolz, said the labour market data was at the moment
less important to the Fed's considerations on monetary policy
than inflation data and global financial market pressures.
"The US labour market is fine – it doesn’t really matter if
payrolls come in 10,000 or 15,000 higher or lower," he said.
The euro added to losses the previous day on the back of
dovish comments from the European Central Bank chief, who said
he saw no reason to deviate from the ECB's policy path, which
includes sub-zero interest rates and bond-buying until at least
the euro of the year.
The single currency hit a three-week low of $1.0626,
and earlier hit a 4 1/2-month low against the yen.
The U.S. air strike came during a two-day summit between
Trump and Chinese President Xi Jinping, and will add a new
dimension to their talks.
The meeting had a strong focus on trade and North Korea's
military programme. Trump had warned that he would be ready to
act unilaterally to address North Korea's nuclear program if
China does not step up to help in the matter.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Marc Jones in London and markets team
in Tokyo; editing by Andrew Roche)