TOKYO – The dollar was top-heavy around ¥105.50 in Tokyo trading Wednesday amid re-kindled risk aversion following a sharp overnight pullback in U.S. stock prices.
At 5 p.m., the dollar stood at ¥105.46, compared with ¥105.48 at the same time Tuesday. The euro was at $1.2398, down from $1.2465, and at ¥130.72, down from ¥131.48.
In New York trading overnight, the greenback initially advanced to near ¥106 on receding fears of a U.S.-China trade war, but it fell back to around ¥105.30 as U.S. equities sharply turned into negative territory.
In Tokyo, the U.S. currency rallied above ¥105.60 in midmorning trading, supported by Japanese importers’ buying ahead of the end of the month, traders said.
Dollar buyers also took heart from a Chinese media report that North Korean leader Kim Jong Un suggested his country’s willingness to work for the denuclearization of the Korean Peninsula, at a summit with Chinese President Xi Jinping in Beijing earlier this week.
The dollar rose to levels around ¥105.70 in afternoon trading, but failed to rise further amid lingering uncertainties over U.S.-China trade tensions, traders said.