The dollar plunged below ¥111 in Tokyo trading Monday, with market players vigilant over remarks by U.S. President Donald Trump warning against a stronger dollar.
At 5 p.m., the dollar stood at ¥110.96, down from ¥112.44 at the same time Friday. The euro was at $1.1731, up from $1.1640, and at ¥130.18, down from ¥130.89.
The greenback fell below ¥110.90 in the early morning, after Trump’s comment Friday complaining of the dollar’s strength and a report the same day that the Bank of Japan is considering making its long-term bond yield target more flexible.
The dollar recovered some ground after the BOJ launched a money market operation to buy Japanese Government Bonds (JGBs) unlimitedly at a fixed yield in the midmorning, but it soon fell below ¥110.80.
The dollar rose above ¥111 at one point in late trading, but it mostly moved around ¥110.90 in the afternoon.
“Higher Chinese stocks and a strong Chinese yuan supported the dollar’s downside,” a currency broker said, suggesting a receding of the risk-averse mood seen late last week.
Still, “it is no surprise if the dollar falls to levels around ¥110.50” after the remarks by Trump, the currency broker added.
But an official of a foreign exchange margin trading service firm said that “the dollar may recover its strength” in view of the brisk U.S. economy and strong concerns over inflation due to the introduction of new U.S. tariffs.