Business / Financial Markets | CURRENCY MARKET

Dollar weakens to around ¥109.40 in Tokyo

JIJI

The dollar was slightly weaker around ¥109.40 in Tokyo trading late Friday, due to growing geopolitical concerns over the Korean Peninsula following U.S. President Donald Trump’s abrupt decision to cancel his planned summit with North Korean leader Kim Jong Un.

At 5 p.m., the dollar stood at ¥109.36-36, down from ¥109.62-62 at the same time on Thursday. The euro was at $1.1688-1688, down from $1.1722-1722, and at ¥127.82-83, down from ¥128.50-51.

In early trading, the dollar dropped to levels around ¥109.20, in an extension of its sluggishness seen in overseas markets after Trump decided Thursday to call off the first-ever U.S.-North Korea summit slated for June 12 in Singapore.

The greenback later attracted purchases by real demand-backed players and buying supported by hopes for a technical rebound, rising to levels around ¥109.70, traders said.

After falling to near ¥109.30 due to a drop in long-term U.S. interest rates, the U.S. currency rebounded to levels around ¥109.40 in late trading, traders said.

As the currency market has factored in the cancellation of the Trump-Kim summit, selling of the dollar against the yen was limited, an official of a major Japanese bank said, while adding that “a risk-on mood failed to prevail among market players.”

“The dollar met with position-adjustment selling on an upward trend,” an official of a foreign exchange margin trading company said.

The dollar is expected to trade in a narrow range versus the yen for the time being, traders agreed.