Business / Financial Markets | CURRENCY MARKET

Dollar weakens slightly to below ¥113 in Tokyo amid continuing U.S.-China trade tensions

JIJI

The dollar was slightly weaker below ¥113 in Tokyo trading late Thursday, dragged down by renewed jitters over the U.S.-China trade war.

At 5 p.m., the dollar stood at ¥112.96-97, down from ¥113.05-06 at the same time on Wednesday. The euro was at $1.1607-1608, down from $1.623-1623, and at ¥131.13-14, down from ¥131.40-47.

The dollar traded around ¥112.80 in early trading after falling to around ¥112.70 in overnight trading overseas due to rekindled concerns over the intensifying bilateral trade war, traders said.

Such worries were fueled by a U.S. media report that the Chinese Commerce Ministry said Wednesday it would need to take further measures in retaliation against new steel and aluminum tariffs imposed by the U.S. government, traders said.

The greenback fell below ¥112.70 in midmorning trading after Japan’s benchmark 225-issue Nikkei stock average trimmed gains soon after the opening bell.

After moving around ¥112.70 later in the morning, the dollar firmed gradually in afternoon trading and neared ¥113 in late trading, reflecting its strengthening against the euro.

“The dollar’s upward momentum (versus the yen) halted after the greenback retook ¥113 on Wednesday. But the dollar attracted some buybacks after moving on a firm note above ¥112.60,” an official of a foreign-exchange margin trading service provider said.

“The dollar-buying trend is continuing, although market players find it difficult to move amid a dearth of major trading incentives,” an official of a trust bank said.

An official of a foreign-exchange brokerage house predicted that the dollar is expected to move narrowly above ¥112.50 if there is no market-roiling news.