The dollar dived below ¥106 in Tokyo trading Friday, as market sentiment deteriorated after U.S. President Donald Trump said the United States will impose tariffs on steel and aluminum imports.
At 5 p.m., the dollar stood at ¥105.73-74, down from ¥106.79-80 at the same time Thursday. The euro was at $1.2263-2263, up from $1.2200-2200, and at ¥129.66-67, down from ¥130.29-30.
The greenback was hit by heavy selling in early trading, after U.S. share prices plunged on Thursday on Trump’s announcement of the plan to impose tariffs of 25 percent on steel imports and 10 percent on aluminum imports.
In late morning trading the dollar fell below ¥106, as Japanese stocks plummeted following the U.S. equity rout.
The U.S. tariffs “would intensify trade conflicts and negatively affect the global economy,” a currency market broker said.
After moving narrowly around ¥106, the dollar fell below ¥105.80 in the afternoon on renewed selling following a remark by Bank of Japan Governor Haruhiko Kuroda about a future exit from the current monetary easing policy, market sources said.
“We would discuss such an exit if 2 percent inflation is achieved in 2019,” Kuroda reportedly told a parliamentary meeting.