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Dollar cuts gains to move around ¥109.20

JIJI

The dollar gave up some early gains to fluctuate around ¥109.20 in Tokyo trading late Friday, with a wait-and-see mood growing ahead of the first round of France’s presidential election on Sunday.

At 5 p.m., the dollar stood at ¥109.19-24, up from ¥109.00-00 at the same time Thursday. The euro was at $1.0721-0724, down from $1.0748-0748, and at ¥117.07-09, down from ¥117.15-17.

The dollar rose above ¥109.40 in early trading on the back of an overnight rise in U.S. stock prices and hopes for a tax system reform in the United States.

The dollar drew support from a comment by U.S. Treasury Secretary Steven Mnuchin, who said at an event in Washington on Thursday that the administration of U.S. President Donald Trump will unveil a major tax reform plan very soon, market sources said.

But the dollar fell to around ¥109.20, with market players adjusting their positions before Sunday’s first round of voting for France’s next president.

“The dollar was hit by position-adjustment selling following its overnight rise in overseas trading,” an official of a currency brokerage firm said.

Although the dollar rose back to around ¥109.40 after Tokyo stocks extended gains toward the close, the U.S. currency came under selling pressure in late hours in line with its weakness against the euro.

The euro drew buying as a risk-aversion mood eased somewhat on news that centrist Emmanuel Macron is taking a lead in the French presidential race, market sources said.