Business / Financial Markets | CURRENCY MARKET

Dollar briefly tops ¥110.90 in Tokyo amid tensions Down Under

JIJI

Position-adjustment buying lifted the dollar above ¥110.90 at one point in Tokyo trading Thursday amid political tensions in Australia.

At 5 p.m., the dollar stood at ¥110.80-80, up from ¥110.42-42 at the same time on Wednesday. The euro was at $1.1567-1568, up from $1.1561-1562, and at ¥128.17-17, up from ¥127.67-67.

After moving around ¥110.55 in early trading, the dollar scaled to top ¥110.80 by midmorning, thanks to its advance against the Australian dollar amid growing political uncertainties in Australia, traders said.

Japanese importers’ purchases also contributed to the greenback’s ascent, they added.

The U.S. currency gained further ground to break the ¥110.90 line shortly past 2 p.m.

The market was immune from Thursday’s new tariffs levied by the United States and China on $16 billion of imports because the event was already factored in, a Japanese bank official said.

A currency broker said players would find it difficult to act until a resolution to the trade conflict between the two superpowers is found.

“But if the ongoing trade talks between Washington and Beijing yield some fruit, it will support the dollar-yen pair,” the bank official said.

Investors are unlikely to trade actively before U.S. Federal Reserve Chairman Jerome Powell’s scheduled speech in Jackson Hole, Wyoming, on Friday, a trader said.