Business / Financial Markets | CURRENCY MARKET

Greenback retakes ¥112 line for first time in six months

JIJI

The dollar moved firmly above ¥112.30 in Tokyo trading late Thursday, after retaking ¥112 for the first time in about six months in overnight trading overseas, helped by currency softness in emerging economies.

At 5 p.m., the dollar stood at ¥112.32-32, up sharply from ¥111.00-00 at the same time Wednesday. The euro was at $1.1685-1686, down from $1.1734-1734, and at ¥131.26-27, against ¥130.26-26.

In early trading, the dollar traded at levels above ¥111.90 after attracting hefty purchases against emerging economy currencies in overnight trading overseas due to a plunge in crude oil prices and concerns about the U.S.-China trade war, traders said.

After approaching ¥112.40 around noon in line with gains in the benchmark 225-issue Nikkei stock average, the U.S. currency moved around ¥112.20 in afternoon trading.

In late trading, the dollar attracted renewed demand and climbed above ¥112.30.

“The dollar drew buying at one point on speculation that China may guide the yuan lower,” an official at a foreign-exchange margin trading service firm said.

The speculation grew after China said it will take comprehensive measures both qualitatively and quantitatively in response to additional tariffs on Chinese products pledged by the administration of U.S. President Donald Trump on Tuesday, according to the official.

An official of a Japanese bank said that dollar purchases against the yen “may gain momentum if the U.S. consumer price index for June, to be released later on Thursday, turns out stronger than expected.”