Business / Financial Markets | CURRENCY MARKET

Greenback weakens to around ¥111.60 in Tokyo as Sino-U.S. trade woes worsen


The dollar weakened to around ¥111.60 in Tokyo trading Thursday, weighed by rekindled concerns about the U.S.-China trade war.

At 5 p.m., the dollar stood at ¥111.60-60, down from ¥112.11-11 at the same time Tuesday. The euro was at $1.1631-1631, down from $1.1687-1687, and at ¥129.81-82, down from ¥131.02-03.

The dollar slipped through ¥111.60 in the morning as fears of the escalating trade tensions between the United States and China grew after the administration of President Donald Trump said it would consider imposing a higher tariff than initially planned on $200 billion of Chinese imports.

In the afternoon, the greenback lost further ground close to ¥111.50, with investor sentiment dampened by stock sell-offs in Tokyo and Shanghai.

The dollar recouped some of its losses as the yen was sold following the Bank of Japan’s surprise purchases of Japanese government bonds. The BOJ’s action “put a brake on Japanese long-term interest rates’ advance,” a currency broker said.

But players found it safe to remain risk-averse in view of the fluid U.S.-China trade relations, an official at a foreign-affiliated securities firm said.