The dollar was softer below ¥110.80 in late Thursday trading in Tokyo, pressured by lingering concerns over U.S.-China trade friction and uncertainties over the situation in Turkey.
At 5 p.m., the dollar stood at ¥110.78-78, down from ¥111.33-33 at the same time on Wednesday. The euro was at $1.1367-1368, up from $1.1332-1332, and at ¥125.92-94, down from ¥126.17-17.
The dollar slid below ¥110.50 in overnight trading abroad reflecting the Turkish turmoil and worries about a slowdown in the Chinese economy.
After drifting below that level early Thursday in Tokyo, the greenback jumped above ¥110.90 in the late morning as hopes grew for progress in U.S.-China trade issues following news that a Chinese delegation led by Wang Shouwen, the vice commerce minister, will visit the United States later this month for trade discussions between the world’s two biggest economies, market sources said.
In the afternoon, the dollar fluctuated around ¥110.80.
Despite the resilience of the dollar, market players are not too optimistic about the course of the U.S. currency.
“Investors’ risk appetite didn’t grow further,” a think tank official said, pointing out, “Washington and Beijing reached an accord in past discussions, but they eventually ended up canceling it.”
An official at a Japanese bank warned that uncertainties over Turkey continue to cap the dollar’s topside, though the lira’s tumble has come to a halt.
“The Turkish currency’s weak tone has led to falls in the currencies of other emerging economies, as the country’s relations with the United States remain sour and the political situation in Turkey hasn’t improved.”