Business / Financial Markets | CURRENCY MARKET

Dollar cuts losses to trade around ¥110.60 in late Tokyo

JIJI

The dollar pared early losses to move around ¥110.60 in Tokyo trading late Monday.

At 5 p.m. the dollar stood at ¥110.61, down from ¥110.70 at the same time Friday. The euro was at $1.1420, up from $1.1387, and at ¥126.32, up from ¥126.07.

In early trading, the dollar slipped through ¥110.50 on selling by investors concerned about further deterioration in relations between Washington and Ankara over an American pastor detained in Turkey.

But the dollar recovered above the ¥110.50 line as worries about the U.S.-China trade dispute waned, following media reports that the two economic superpowers will resume trade talks ahead of the planned new tariff battle later this week.

The greenback gained further ground later, thanks to buying by Japanese importers for settlement purposes and investors who turned less risk-averse in view of rises in Chinese stocks, market sources said.

But the U.S. currency’s topside was capped by the Nikkei stock average’s weakness.

The day’s dollar-yen pair was “struggling for direction” amid a lack of major trading incentives and ahead of the U.S.-China trade talks as well as a scheduled speech by U.S. Federal Reserve Chairman Jerome Powell, a currency broker said.