Business / Financial Markets | CURRENCY MARKET

Dollar weakens slightly to ¥111 in late Tokyo trading

JIJI

The dollar was slightly weaker at ¥111 in late Tokyo trading on Wednesday, on the back of worries about U.S.-China trade friction.

At 5 p.m., the dollar stood at ¥111.00, down from ¥111.07 at the same time on Tuesday. The euro was at $1.1734, down from $1.1745, and at ¥130.26, down from ¥130.46.

In early trading, the dollar sank close to ¥110.80 following a media report that the U.S. government was set to release a list of Chinese products worth $200 billion that would be subject to additional tariffs.

While Washington announced the list soon after and said it will launch procedures for imposing 10 percent extra tariffs on the items, the U.S. currency rebounded quickly, though only somewhat, thanks to buying on dips.

But the greenback met with renewed selling and slipped below ¥110.80 later in the morning as the benchmark 225-issue Nikkei average on the Tokyo Stock Exchange plunged reflecting investor concerns over the U.S.-China trade dispute.

With the Nikkei trimming its loss, however, the dollar showed resilience again to top ¥111.10 toward noon The currency moved around ¥111 in afternoon trading.

“The dollar’s undertone is solid, but active purchases were held in check,” an official of a bank-affiliated securities firm said.

“The greenback would remain firm if the U.S. stock market maintains its recovery trend that started in late June,” a foreign brokerage official said.