A threat from President Donald Trump about a possible government shutdown halted a recovery in the dollar as risk off sentiment emerged ahead of Thursday’s Asian trading session.

Trump on Tuesday in the U.S. said he would be willing to “close down” the government to secure funds needed to build a wall along the U.S.-Mexico border. The president had repeatedly pledged he would construct a border wall that Mexico would pay for as part of his plan to tackle illegal immigration, although Mexico has said it would not be funding the barrier.

During the rally in Arizona, the president also said he had doubts over whether a deal could be secured in the renegotiation of the North American Free Trade Agreement. Trump said he believed the U.S. would “end up probably terminating NAFTA.”

Stocks on Wall Street closed lower following Trump’s comments. The Dow Jones industrial average declined 0.40 percent, or 87.80 points, to close at 21,812.09, the S&P 500 slipped 0.35 percent, or 8.47 points, to end at 2,444.04 and the tech-heavy Nasdaq shed 0.30 percent, or 19.07 points, to close at 6,278.41.

Overnight, the dollar slipped below the 109 handle against the yen on the back of Trump’s remarks. The greenback fetched just 108.89 yen at 6:38 a.m. HK/SIN compared to levels as high as 109.82 yen seen before the president’s comments. The dollar index also retraced gains made earlier in the week to stand at 93.147 after a high of 93.619 seen prior to the speech.

Meanwhile, spot gold rose to trade at $1,290.79 an ounce at 6:43 a.m. HK/SIN, compared to levels around $1,282.94 seen earlier. The yellow metal is regarded as a safe haven by investors during periods of uncertainty.

In Asia, futures tipped a lower open for Japanese equities. Nikkei futures traded in Chicago were off 0.54 percent at 19,330 and Osaka futures were off 0.44 percent at 19,350. The benchmark Nikkei 225 index closed at 19,434.64 in the previous session.

Down Under, SPI futures were 0.58 percent lower at 5,704 compared to the S&P/ASX 200’s Wednesday close of 5,737.159.

Markets in Hong Kong are set to re-open after being shut on Wednesday due to typhoon Hato.

On the energy front, oil gained more than one percent overnight after a fall in U.S. crude stockpiles for an eighth consecutive week, according to Reuters. Brent crude futures tacked on 70 cents to settle at $52.57 a barrel and U.S. crude futures added 58 cents to settle at $48.41.

In corporate news, Samsung Electronics launched its Galaxy Note 8 model in New York on Wednesday. The company was forced to recall its Galaxy Note 7 model last year after a battery problem led to several devices overheating and catching fire.

With little data due to be released during the Asian trading session, markets are likely to return their focus on a central banking conference in Jackson Hole beginning Thursday U.S. time.

“A sense of anticipation can be felt across the financial markets ahead of the Jackson Hole Symposium later this week,” said FXTM research analyst Lukman Otunuga in a Wednesday evening note.

While European Central Bank President Mario Draghi is not expected to deliver new policy messaging, the possibility of “verbal intervention to weaken the euro” should not be ruled out, Otunuga added.

The common currency traded at $1.1810 at 6:59 a.m. HK/SIN.