Business / Financial Markets | CURRENCY MARKET

Dollar tops ¥110.40 on higher Tokyo stocks


The dollar erased early losses to top ¥110.40 in Tokyo trading Wednesday, supported by rosier prospects for U.S. trade and political situations and higher Tokyo stocks.

At 5 p.m., the dollar stood at ¥110.42, up from ¥110.15 at the same time Tuesday. The euro was at $1.1561, up from $1.1514, and at ¥127.67, up from ¥126.84.

The dollar fell close to ¥110 in early trading following media reports that Michael Cohen, U.S. President Donald Trump’s former attorney, pleaded guilty to the violation of the election campaign finance law.

But the greenback attracted short-covering purchases after it resisted breaking the threshold, rebounding to around ¥110.40 later in the morning, according to an official at a major brokerage firm.

The dollar added to gains early in the afternoon, following optimistic media reports on U.S.-Mexico trade talks and the U.S.-Turkey crisis over a detained American pastor, an official at foreign exchange margin trading service firm said.

The Nikkei stock average’s advance also supported the dollar, a Japanese bank official said.

But the U.S. currency’s topside grew heavy when it approached ¥110.55, the level at which sell orders were lining up, the margin trade service firm official pointed out.

Players came to sit on the fence ahead of U.S.-China trade talks starting in the United States later Wednesday, a currency broker said.